Does anyone know if buying the freehold on your property increases the value. We pay a ground rent of £20 per year. They have sent us a letter with this years bill saying we can but it for £650. There are 60 years left on the lease?
Blime that's cheap. It might not improve the value of your property but if you want to sell be aware that many building societies refuse to give mortgages on property with 50 yrs or less on lease - or so I have been told.
There was something on Homes under the Hammer last week. That's what made me think about. Next door but 1 sold last year without any problems.
Definitely worth it.
You save should you live there for another 60 years obviously but also it makes it easier to sell and cheaper conveyancing as well.
However I would suggest using a solicitor in case there are any covenants in the freehold etc.
The reason they want to sell is the insurance costs they have to pay on it have spiralled of late.
I assume you are talking about a house and not a flat.
P.S. They are likely going to sell the freehold interest anyway as they now have to offer it to the leaseholder first.
It is a link detached house. We have lived here from when it was first built. I'm 62 & OH is 68 so won't be here that many more years & circumstances hopefully will mean we need to move in the near future ;D.
Can't you ask a local estate agent about the pros and cons.?
I have just said to OH that I'll ask my friend who works at a local estate agent.
At £20 a year it is getting to the point where it becomes more expensive to collect the money than they receive. Do you pay in one annual installment or can you pay monthly. I would insist on paying monthly and see if they reduce the amount of the freehold. In the end they will just stop collecting it. At that point is become more difficult to buy the freehold. It will probably cost you more than the £650 because you may need a solicitor yourself so need to add their fees. Once they stop requesting the money you can apply for the freehold after so many years. Try offering a smaller amount.
I would ask your children what they would like you to do. I think I would like the peace of mind knowing the house was totally mine.
Well it may not increase the value of the property but it will remove a haggling point for any buyer.
If you (or they) have to renew the lease the freeholder can charge you more than you might want to pay - esp if mortgage issuers are concerned over the lease time. I'd buy it - freehold property is generally more desirable..
As a rule a freehold property is worth more and is easier to mortgage. Offer less and see what happens, I would ask a solicitor to deal with it all though - just to make sure nothings missed!
Ooooooooooops. OH has just looked at the deeds, we have 961 years left. Does this put a different light on it please.
Quote from: grannyjanny on September 13, 2011, 16:50:24
Ooooooooooops. OH has just looked at the deeds, we have 961 years left. Does this put a different light on it please.
Yep your ;D going to live a long time
And £650 is a bargain. Say yes before they realise their mistake ;D
Yes it totally puts a dfferent light on it. If that is the case £650 is too high unless it includes their legal expenses.
Grab it quick