Buying the freehold

[BG2015]

I know this is something I can only decide but I'd value other opinions.

I downsized in July after recovering from cancer in 2021-22. I wanted to pay off my mortgage because I decided that I'd like the option of retiring from my teaching job if I could. I'm 56 in February.

So I now have no mortgage after buying a small 3 bed semi. I bought a Leashold house (which I was very wary about but it's actually been fine ) and the ground rent is only £170 a year. The lady who I bought the house off had lived here for 18 years and it has always been £170. There's 140 years left on the lease.

I was left with £20k equity which I have put into an ISA. I've enquired how much it would be to buy the freehold and I've had the information back that it would cost me £10k. I have 8 weeks to decide if I want to proceed.

I just don't know what to do. Part of me wants to go ahead and get it sorted - mainly so that my 2 DS can sell it more easily when I die, they both stand to inherit the house . But then the other part wants to keep the £20k where it is.

I'm retiring next year and will end up with a £45k lump sum so I know I've got more financial security next year but I'm still so undecided.

The house is worth £180k.

I’d buy the freehold. It’s a big risk not to. You’ll still have 10k in savings.

I would buy the leasehold and give yourself peace of mind for the future. Is that s guaranteed price tho or could it rise??? Also if you don't buy the leasehold would the ground rent increase??

Buy the freehold. Ask if they will consider dropping the price.

www.moneysavingexpert.com/mortgages/buy-freehold-right-to-manage/

You have/will have other rainy day money, who knows who might take over the freehold and put up ground rent, buy the freehold. Honestly this is a no brainer!

Do it now, before anything changes. 10k for peace of mind and ease of future sale seems a relatively small price to pay.

Completely agree with previous replies, if you have the funds (which you do) buy the freehold, you won't regret it.

The management company (according to Trustpilot) are not a good company and I had to pay £140 for them to tell me how much the freehold would be.

If I decided to go ahead in the future I think the £140 would be more and it would be more than £10k too.

It doesn't sit easy with me knowing I don't own the land.

I very much doubt they would. If they can get £10k off me why would they consider less.

You can try and negotiate the price. However even for £10k it’s well worth buying. A leasehold house, especially with such a short lease would be difficult to sell. Being freehold would add more fhan £10k to the houses value.

I bought the leasehold on my home 2 years ago. Lived in the house since beginning of 2013.
The management company of the lease has already changed once!
Bought it for £6K and extended my house! Worth it! Especially when people are wanting to sell they have had bother due to the leasehold

Never mind a reduction OP, grab it while you can!

Did you use a solicitor or just do it yourself?

It seems fairly straightforward. They've sent me a form to fill in.

Definitely buy the freehold. In house terms 140 years isn't very long and it will add to both your peace of mind and your security.

I bought my freehold maybe 15 or 20 years ago. The lease was for 999 years and the ground rent was a 1/5 share of £4 a year which went to the 'head house' (my next door neighbour but one). I actually paid it in nice wine which was entirely acceptable. When some neighbours were buying their freehold they asked whether I was also interested in buying mine. I said yes. Think it cost about £6k then.

Did you get an independent valuation?

There are companies that specialise in this. I wouldn't just take the lease holders price without seeing proof that that is the value.

An independent valuation cost us about £500 but that was about 11 years ago.

We bought ours but we only had about 60 years left and to buy it only cost an extra £1000 from just extending it.

No independent valuation. I'm just worried that the £10k will spiral into £11, 12k

I'm pretty sure I'm going to do it now. I've emailed my solicitor to ask his advice.

Absolutely do it!! Someone else can buy the freehold and crank up the ground rent!

It will also make your house fare more valuable if you wish to sell!