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Wanderers Ways. Neil Thompson 1961-2021

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Leasehold/freehold

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Just a heads up for those who are unaware

 

My mums house leasehold ran down to 50years as we have found out whilst doing probate etc

 

Now when my mum bought the house she was advised to buy the freehold as future problems can arise for people inheriting later on (and she ignored ????)

 

Bottom line it’s a cool £15k to buy and it’s pretty much un mortgageable for any new buyers unless cash purchase, as we will now have to contribute or pay the full amount to sell

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Renew the lease with the freeholder would be the obvious suggestion. People buy portfolios of freeholds as investments and use ground rents to deliver the income/yield.

 

Pretty sure they would be open to extending the lease

  • Author

Believe it or not there isn’t much difference in extending to buying, the freeholder owns a good proportion of the street and wants to sell

 

Tidy sum for himself there

seems a bit steep. have they quoted you direct ? 

 

i bought two leasehold for £1200 (only £600 a house) and paid it off over 6 months for each house. 

  • Author

seems a bit steep. have they quoted you direct ?

 

i bought two leasehold for £1200 (only £600 a house) and paid it off over 6 months for each house.

yes direct and checked with other residents to see and all appear to be same or there abouts

Happened to my mate, think he was looking at 30k.

It's something I come across more & more at work. It is mortgageable for now (just) but anybody buying the property would have to use a lender that's happy with that remaining term.

 

Some lenders like Clydesdale Bank & Natwest will lend if there's 50 yrs left now - agreed on a case by case basis, but the lender's surveyor might down value the property if they think the low lease term affects it - which could affect any sale.

Much of Bolton is, I think, residue of 999 years, so probably not going to affect us.

  • Author

Lucky enough he’s agreed to sell after going quiet and saying originally he’s in no rush

Much of Bolton is, I think, residue of 999 years, so probably not going to affect us.

 

 

Owned by the Earl of Bradford, I seem to recall?

On this subject, I bought a new house 10 years ago, it was £120 a year land rent. That was after previously paying a peppercorn rent ie free. New build robbing cunts, I'm hoping to be able to PPI style claim it back at some point. Current house has 950 years left and is £7 a year.

 

@Hazzy - mortgage renewal time in 2 years, I'll give you a shout then.

We just sold ours and it had about 900 years left

 

They stopped collect the ground rent decades ago, it was peanuts a year

old houses with 100s of years left 

 

you could buy the buy the ground rent for 10 times what what you pay a year 

Mines 15 quid a year. Pointless

  • Author

Also while I’m soring things out anyone with expertise in investment bonds in particular relief for dificiencies?

Also while I’m soring things out anyone with expertise in investment bonds in particular relief for dificiencies?

I’m happy to help

I fucking ground rents more than any other subject in the world

 

There is no paperwork or proof for the fucking things.

  • Author

I’m happy to help

will pm you shortly thanks

My dad used to own a couple of thousand ground rents and was gutted when he sold them. I could've made a few quid

I fucking ground rents more than any other subject in the world

 

There is no paperwork or proof for the fucking things.

Deeds

Land/Charge Certificate contain the information.

Search at Land Registry will tell you.

Amazing now to think that the leaseholders use to get one of the residents to collect the ground rent for them. For nothing!

 

Mate of mine was contacted by one of them once asking if he'd knock on his neighbours doors and collect the £5 each off them all. I can imagine his response!

Just dug out a letter I ignored when we moved into our house. Couple of years old the letter but says we can buy the holding for 50 quid. Ground rent seems to be a couple of quid a year. We got massively screwed over by our estate agent and seller when we bought our house, I still can't believe we can't prosecute them for it. Unsurprisingly they didn't mention this either, although this is my fault for ignoring it. Safe to say I'm shitting myself till the morning when I ring to see if the 50 quid deal still stands.

Not an issue on older properties but an absolute scam on new builds. Ours is £300 a year the greedy bastards.

Even bigger scam though is covenants; our last home was new but a freehold yet I had to pay the original developers £250 to 'apply' for the right to build a conservatory. Both these things are a rip off.

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