| Freehold 19:35 - Feb 16 with 3774 views | perchrockjack |
We re selling the family home
They want 10 k for the freehold
Is this a Swansea scam ff scam
Less time on freehold dearer it is
Me ol fella bought house in 1962 and didn't buy the freehold | |
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| Freehold on 20:10 - Feb 16 with 3201 views | Lord_Bony |
Depends how long is left on it.
Do you mean buying the leasehold?
Technically it still belongs to the landlord if you don't buy it.....I may be wrong... | |
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| Freehold on 20:13 - Feb 16 with 3192 views | perchrockjack |
No freehold
Just wonder who the landlords are
All of Ridgeway was the same.
Some bought, my parents didn't
Found out only when discussing the future with my father while mum was drifting away | |
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| Freehold on 20:16 - Feb 16 with 3177 views | Lord_Bony |
10k seems reasonable or you could go down the tribunal route and they may decide a cheaper price for you to buy it.
Either way there's a lot of formalities and fees involved if it's to be done right. It has to be done if you want to sell.
Good luck. | |
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| Freehold on 20:44 - Feb 16 with 3105 views | waynekerr55 |
Perchie PM me the details - I know this issue inside out as we had to acquire our freehold before we were able to extend our lease on the flat | |
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| Freehold on 20:49 - Feb 16 with 3084 views | aberavon_wizard |
My son had a house nr Pontypridd buillt in mid 60s and was leasehold. He could not sell it because prospective buyers could not get a mortage. In the end we bought the freehold for £12K approx. House worth £140K.
We are in the process in buying the freehold for another son in Baglan bulit in 1972 and it will cost us £6K approx. House worth £160K.
Hope this is of help. The house will be difficult to sell if it is leasehold. | | | |
| Freehold on 20:52 - Feb 16 with 3071 views | Darran |
Where's the house in Baglan Butt? | |
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| Freehold on 20:53 - Feb 16 with 3067 views | trampie |
How long is left on the lease, how much is the ground rent, what are the rules around the leasehold, a few things to suss out to weigh things up. | |
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| Freehold on 20:59 - Feb 16 with 3038 views | Darran |
Tidy. ðŸ‘🻠| |
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| Freehold on 21:33 - Feb 16 with 2991 views | trampie |
''acquire our freehold before we were able to extend our lease on the flat'', are you talking about two different properties ? as if you acquire a freehold there would not be a leasehold would there ? | |
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| Freehold on 21:41 - Feb 16 with 2973 views | waynekerr55 |
Yes - I should have said that this was between our place and the upstairs flat.
Matters were complicated as we had an absent freeholder issue. We had to set a company up to acquire the freehold title which then allowed us to extend the leases on both flats. | |
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| Freehold on 21:46 - Feb 16 with 2959 views | trampie |
Sounds very complicated is this in London ? | |
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| Freehold on 21:50 - Feb 16 with 2944 views | waynekerr55 |
Yes, although this applies anywhere where there is more than one property (flats or maisonettes). You have to arrange them as leasehold or you're pretty much limited to cash buyers.
We granted 999 year leases at peppercorn rent, and the freehold company has 2 shares (one for each flat). The only proviso is that the freehold company has to insure the building. | |
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| Freehold on 21:58 - Feb 16 with 2926 views | Swanzay |
Yes this a situation unique to Swansea, FFS! | | | |
| Freehold on 23:16 - Feb 16 with 2825 views | perchrockjack |
Thanks friends | |
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| Freehold on 00:59 - Feb 17 with 2762 views | Treforys_Jack |
My ground rent was £15 a year, tidy thinks I, I'll carry on paying that then. 54 years left on the lease, whats the problem. Turn up at the bank to negotiate a new deal on my mortgage, leasehold sir tut tut tut !!!!! Nasty little surprise that was.
In a nutshell, I paid nearly 8k for my lease including all the legal fees. House is worth approximately 150k, lease was 15 quid per annum and had over 50 years to run. The issue is next year or the year after the lease would probably cost 9k and so on as the term reduces. 50 years time the lease would probably cost more than the house was worth.Not my problem I know but potentially my grandchildren, also buyers may struggle to get a mortgage against a property with a lease less than 75 yrs if ever I decide to sell. | | | |
| Freehold on 02:20 - Feb 17 with 2711 views | squarebear |
Our (Swansea) house has 920 years remaining on a 999 year lease. We've been quoted 5K for the freehold (plus a couple of K in legal fees). We've decided not to bother with it. It would have been different of course if the lease was significantly less.
As pointed out above our hands are tied re: buildings insurance, plus we needed the OK from the leaseholder prior to getting building work done.
One worry is a news story I heard recently whereby venture capitalists are buying up leases then altering the terms of the lease. Apparently the leaseholder is under no obligation to notify the home owner of their plans to sell to a third party. | | | |
| Freehold on 06:23 - Feb 17 with 2686 views | waynekerr55 |
Incorrect.
Right of first refusal must be given to the leaseholder under the landlord and tenant act 1987.
Plus they cannot vary the terms of the lease without agreement or clear breaches by tenant. | |
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| Freehold on 06:39 - Feb 17 with 2670 views | jack247 |
Yeah, most lenders want 70-75 years remaining on a lease. The property depreciates as the lease reduces and if you default on their mortgage with a short term left, it becomes their problem.
Leasehold properties are usually slightly cheaper than comparable freehold properties. It makes sense to just bite the bullet and buy the lease as soon as you can. It's only going to get more expensive over time. | | | |
| Freehold on 07:20 - Feb 17 with 2639 views | squarebear |
https://www.theguardian.com/money/2016/oct/29/new-builds-house-buyers-leasehold-
It relates to new builds but is still a cautionary tale. Note also the charge made for granting the home owner permission to build an extension.
But further to your post (which is somewhat reassuring), if I have discussed the purchase of the freehold might that be considered an offer, leaving me at risk of having it sold to another party? | | | |
| Freehold on 08:52 - Feb 17 with 2575 views | perchrockjack |
Thanks treforus
House had a 99 year freehold so 40 left so its worth buying it and 10k seems about the market rate
thanks for the contributions and help wayne | |
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| Freehold on 09:06 - Feb 17 with 2555 views | waynekerr55 |
Some considerations:
Firstly ask them how they reached the 10k valuation? Has this figure been properly calculated?
Secondly, our valuation for tribunal cost £1500 inclusive of VAT. This was from a company who the Lands Tribunal regularly use. I would expect a couple of hundred quid less in Wales, but not much less.
Thirdly, if they do show you a valuation, the Sportelli 5% principle applies due to the length of the lease | |
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| Freehold on 09:09 - Feb 17 with 2551 views | perchrockjack |
Thanks
Think we ll take this to pm | |
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| Freehold on 09:13 - Feb 17 with 2544 views | Private_Partz |
Yep. 10k is about the going rate. It is massive con. People pay £10.50 a year. Much easier than shelling out much bigger bucks. Trouble is the Freehold goes up year on year whilst the ground rent remains static.
The whole of the estate in Dunvant and Killay, the old BG James estate, is an example of this. I learned from experience. I had it to purchase it for 2 properties. | |
| You have mission in life to hold out your hand,
To help the other guy out,
Help your fellow man.
Stan Ridgway
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