Leasehold/freehold question.

tensmum1964 · 2023-05-09T19:22:03+00:00

I'm not sure if this will make sense so.apologies in advance. We are thinking of buying a leasehold property. The leasehold is also for sale making it in to a freehold but our budget won't stretch that far. Its possible in a few years time that we could afford to buy the leasehold but I was wondering, If we bought the property as a leasehold could somebody else buy the freehold before us or would we be safe ? I really don't understand how it works.

Losingweightissohard · 09/05/2023 20:24

Depends some lease holds are for 999 years and £5 a year some are for 150 years but double every 10 be careful do not buy a house with a doubling lease.

sorrynotathome · 09/05/2023 20:26

The person who owns the freehold could sell it but it’s unlikely they would do that without offering it to you first.

Original poster

tensmum1964 · 09/05/2023 21:08

Losingweightissohard · 09/05/2023 20:24

Depends some lease holds are for 999 years and £5 a year some are for 150 years but double every 10 be careful do not buy a house with a doubling lease.

Thank you. I had not heard of double leasing. I will look in to that.

OP posts:

Original poster

tensmum1964 · 09/05/2023 21:12

sorrynotathome · 09/05/2023 20:26

The person who owns the freehold could sell it but it’s unlikely they would do that without offering it to you first.

I suppose my thoughts are that at the minute it's being offered at a good price but there's nothing to stop the owner either raising the price or selling it to the highest bidder. That I assume is a big risk. I don't know where that would leave us to be honest.

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S72 · 09/05/2023 21:27

Leasehold is hopefully changing soon. Still waiting for the government to announce the specifics surrounding leasehold reform, making it more straightforward for a leaseholder to purchase the freehold.

The current rules are online. You could also view the FAQs on https://www.gov.uk/leasehold-property/buying-the-freehold

Contact the Leasehold Advisory Service for free advice if you want to discuss it https://www.lease-advice.org/

Leasehold property

Leasehold property - leasehold disputes, buying the freehold, service charges, lease extensions and Right to Manage

https://www.gov.uk/leasehold-property/buying-the-freehold

Original poster

tensmum1964 · 09/05/2023 22:09

S72 · 09/05/2023 21:27

Leasehold is hopefully changing soon. Still waiting for the government to announce the specifics surrounding leasehold reform, making it more straightforward for a leaseholder to purchase the freehold.

The current rules are online. You could also view the FAQs on https://www.gov.uk/leasehold-property/buying-the-freehold

Contact the Leasehold Advisory Service for free advice if you want to discuss it https://www.lease-advice.org/

Thank you. This is useful to know.

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MinnieMountain · 10/05/2023 06:10

I assume it’s a house? The freeholder can’t change anything in the lease without your consent.

Most leasehold houses you just pay ground rent and possibly the freeholder insures.

TafeaJovouzto · 10/05/2023 06:19

How long is the remaining lease? It might be being offered in this way because the existing lease is so short that the property is unmortgageable - but still potentially of interest to cash-buyers so the more expensive option with buying the lease included is the option for those buying with a mortgage.

Original poster

tensmum1964 · 10/05/2023 06:46

TafeaJovouzto · 10/05/2023 06:19

How long is the remaining lease? It might be being offered in this way because the existing lease is so short that the property is unmortgageable - but still potentially of interest to cash-buyers so the more expensive option with buying the lease included is the option for those buying with a mortgage.

The lease still has 125 years on it. The seller is the current leaseholder but the freehold is owned by someone else. Its very early stages as we haven't put in an offer for this particular property but I really like it, so trying to understand the logistics of it all.

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Original poster

tensmum1964 · 12/05/2023 14:43

MinnieMountain · 10/05/2023 06:10

I assume it’s a house? The freeholder can’t change anything in the lease without your consent.

Most leasehold houses you just pay ground rent and possibly the freeholder insures.

It's an old barn conversion split in to two houses.

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20questions · 12/05/2023 15:10

It is far better to own the freehold. Otherwise you are open to financial abuse from an unscrupulous person/company who may buy it with a view to "sweating the asset".
Who is the other leaseholder? Would be worthwhile having a chat with them..

Unescorted · 12/05/2023 15:18

It is a really complicated part of land law. In your position I would speak to the Leasehold Advisory Service linked above. Without your lease in our hands and a having trained conveyancing solicitor sat by our sides the best you will get is something that is a possibility. Some of the advice above is incorrect or has conflated your query with another issue.

Do not make a legal or financial decision based on what you are being told by an unsighted random on the internet.

TizerorFizz · 12/05/2023 16:56

Buy the freehold now. Leasehold on an old barn is not a good idea. You will be needing the freeholder to look after the fabric of the building and they probably require the leaseholder to pay into a fund for this. As other poster says, get legal advice. For me it’s freehold now.

Original poster

tensmum1964 · 12/05/2023 19:33

Thank you for all your replies. I don't think I was very clear in my original post. Partly due to me being clueless. So to clarify as I understand it. There are two buildings split in to four properties. Each property is owned by a leaseholder. The person that holds the freehold to all of them has offered the freehold for sale to each leaseholder. So far one leaseholder is going through the process of purchasing the freehold. This person is the immediate neighbour of the seller. Think one building split in to two like a terrace house.. The person selling the property that I'm interested in isn't bothering to purchase the freehold so if I bought his property I would have to negotiate a separate purchase of the freehold. The ground rent is very low. The conversion itself has been done to a very high spec and I absolutely love it. The estate agent has sent me a copy of the lease but I've not looked at it fully yet and I think I will need help understanding it. if I do put in a serious offer then I would get the lease looked at by a professional. I've read other bits of info about leaseholds on Google etc and it's just left me more confused. I worry that I could be buying The devil's chalice but a big part of me wants to take the risk as life us short and all that. I'm a cash buyer so I wouldn't need a mortgage so no issues there. I know mumsnet users can't tell me whether I would be making a right or wrong decision but it helps to have views. Opinions and experiences of others.

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Treaclemine · 12/05/2023 20:45

I was in a leasehold property, the freehold was sold at auction and the new freeholder changed the lease to a doubling ground rent. WE got out of it but with difficulty due to some lessees not being involved wholeheartedly. I wouldn't touch it.

Original poster

tensmum1964 · 12/05/2023 20:52

Treaclemine · 12/05/2023 20:45

I was in a leasehold property, the freehold was sold at auction and the new freeholder changed the lease to a doubling ground rent. WE got out of it but with difficulty due to some lessees not being involved wholeheartedly. I wouldn't touch it.

That is the sort if thing that worries me as it would be just my luck.

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TizerorFizz · 12/05/2023 22:11

So buy the freehold. We have one of 4 flats where they were all leasehold. We all bought our share of the freehold. It’s far better to do this if you can. You need to ask a solicitor about how it would work with 2/4 as freehold and 2/4 leasehold.

20questions · 12/05/2023 22:56

Treaclemine · 12/05/2023 20:45

I was in a leasehold property, the freehold was sold at auction and the new freeholder changed the lease to a doubling ground rent. WE got out of it but with difficulty due to some lessees not being involved wholeheartedly. I wouldn't touch it.

The lease is a legal document and cannot be changed without your consent. A new freeholder may sweat their asset with grossly inflated service charges (these can be challenged at FTT but time consuming and stressful process). However they cannot change the terms of your ground rent already written into your lease.
@tensmum1964 How can you buy your freehold if someone else is in the process of buying it?
You need to get a copy of the lease before putting in an offer. Some leases can be horrific!
You need to read it thoroughly and if in doubt it is worth paying a solicitor who has proper experience of leases who can go through it with a fine tooth comb and explain it to you!
Join the National Leasehold Campaign Facebook group to get advice. It is a knowledgeable and helpful group.

Original poster

tensmum1964 · 12/05/2023 23:08

20questions · 12/05/2023 22:56

The lease is a legal document and cannot be changed without your consent. A new freeholder may sweat their asset with grossly inflated service charges (these can be challenged at FTT but time consuming and stressful process). However they cannot change the terms of your ground rent already written into your lease.
@tensmum1964 How can you buy your freehold if someone else is in the process of buying it?
You need to get a copy of the lease before putting in an offer. Some leases can be horrific!
You need to read it thoroughly and if in doubt it is worth paying a solicitor who has proper experience of leases who can go through it with a fine tooth comb and explain it to you!
Join the National Leasehold Campaign Facebook group to get advice. It is a knowledgeable and helpful group.

Show quote history

Thank you for that. The more I read the more I wonder if its a good idea so will tread cautiously. Just to clarify though, there isn't anyone else buying it. There are four properties in total and each one has been offered the opportunity to buy the freehold for their respective property's

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pilates · 13/05/2023 06:31

I would be looking for another property. It may be more hassle than it’s worth.

Original poster

tensmum1964 · 13/05/2023 09:57

pilates · 13/05/2023 06:31

I would be looking for another property. It may be more hassle than it’s worth.

I think you might be right. There are too many things that could go wrong.

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Wellhellother · 13/05/2023 10:02

Can you not use a bit of your cash to purchase the freehold and get a small mortgage on the property

Treaclemine · 13/05/2023 15:14

I was misleading above due to time elapsing. The ground rent wasn't doubled. What was doubled was the lease extension. ie if you do it now, £1000, if you do next year £2000, etc. For six flats he had paid something like £1300 at auction. Weasel. After th law changed, his wife divorced him and we got the freehold with soem hitches.

Original poster

tensmum1964 · 13/05/2023 18:38

Wellhellother · 13/05/2023 10:02

Can you not use a bit of your cash to purchase the freehold and get a small mortgage on the property

At a push we could purchase the freehold without needing a mortgage so are lucky in that respect. I think the whole thing re leaseholds and freeholds has just got me nervous as I find it quite confusing. I'm more enlightened now though since some of the helpful answers on this thread.

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Kennykenkencat · 14/05/2023 06:25

How can you buy your freehold if someone else is in the process of buying it

As they are houses the other person is buying the freehold to the land their property is built on.

The barn op is looking at is on a separate piece of land to her neighbour