Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
Hi allI currently live in a converted flat. (House split into two flats). Current lease: 84 years for both flats. No service charge and ground rent is very cheap.I have just got some quotes for the following:
So basically double the cost to have share of freehold. Is it worth it? We are planning on moving on within the next 5 years so also interested to hear whether selling with ‘share of freehold’ will fetch more than simply having a long lease. Interested to hear your thoughts.
Thanks for your input. That's my thinking as well, I don't think i'd gain much from getting the freehold. I won't be extending the property either.
Big thing is what costs etc do the Managing agents and or FH charge? Of course there is an RTM route, with a lease extension. I have same situation with one of my houses and the FH is very well known and ruthless, hence FH purchase. But if you're selling in 5 years extension might be better
Also, have you gone the official route, or unofficial?
I would never say no to a freehold! Without it you're forever at the mercy of both landlord & managing agent, obliged to do and pay whatever they want, to squeeze whatever blood out of you that they can, as your lease would have left you very wide open. Once you refuse the FH they can sell it to anyone who can employ whomever they want to manage your home. You will never have security or truly own the property in it's entirety or have the freedom of making all your own decisions. Owning the freehold will give you freedom, peace of mind & will be more valuable if and when you come to sell.
The only thing I'd say is negotiate through surveyors, don't do any informal deals, to ensure you're getting a fair price, and try and drag it out if you can as government reforms may make it cheaper for you. But if you can't drag it out, don't risk it being sold to anyone else - buy it! Full ownership,what a dream!
And please sign this petition
Groups for your interest:
Definitely buy the freehold if you can - you will need agreement of your neighbour to go down the official route or if they're not interested/can't afford it, then you would need to make a direct approach.
It adds value to your property, you can grant new 999 year leases and there will be no ground rent to pay any more. You and your neighbour also have complete control over the management of the building, although the caveat is that you could have problems if you disagree over repairs, i.e. if you live upstairs and the roof leaks they might not be so keen on paying to repair the roof etc., so it's not without potential issues!
Thanks for all the comments.
I think if I was going to live in the property I would likely buy the freehold however as I'll likely be moving within the next 5 years I can't see the appeal.
The ground rent is hardly anything and the current freeholder seems ok.
I may speak to a few local agents to see what price difference we would be looking at if we had the freehold vs long lease.
I do have a question though. If we were to buy the freehold, I imagine we would need to instruct a managing company or would we self-manage? If so, how much would they usually charge?
Depends how many units in the block. With small, ie less than 4 there is usually a premium. With larger block over say 10 or more economies of scale would be used.