leasehold houses
Discussion
just reading todays sunday times.micheal winner is selling his house for 60 million....but the lease runs out in 30 years...what does this actually mean???? after paying all this money would you be kicked out and the lease holders aquire a very expensive house ,and would the buyers be homeless...confused.com..........
To some extent this depends on the terms of the lease.
However the Leasehold reform act does offer some protection in domestic leases.
The devil is in the detail.
As a general rule the lease on a leasehold property can be extended by agreement between the freeholder and leasee. I assume this is a lease direct from the freeholder.
Michel winner is an exceptionally sharp individual. Some would say cut throat.
I would expect the lease to be renegotiated and extended by the freeholder. However this does depend on the particular circumstances of the lease and a substantial fee will no doubt be required to allow such an extension.
I cannot see Mr Winner out of pocket in this. He is SHARP!!
However the Leasehold reform act does offer some protection in domestic leases.
The devil is in the detail.
As a general rule the lease on a leasehold property can be extended by agreement between the freeholder and leasee. I assume this is a lease direct from the freeholder.
Michel winner is an exceptionally sharp individual. Some would say cut throat.
I would expect the lease to be renegotiated and extended by the freeholder. However this does depend on the particular circumstances of the lease and a substantial fee will no doubt be required to allow such an extension.
I cannot see Mr Winner out of pocket in this. He is SHARP!!
999gsi said:
selling his house for 60 million....but the lease runs out in 30 years...what does this actually mean????
The house will originally have been sold like a flat - probably on a "99 year lease".At the beginning (year 1) the value of the house will be much the same as if it was freehold, because 99 years is so long it covers any possible buyer's lifespan.
In the last year (i.e. after 98 years) there's only one year to run so anyone buying the house would only be willing to pay very little - probably the same amount it would cost to rent a house for a year.
In Winner's case, with 30 years left to run, the value will be somewhere in between.
I thought the law changed to say that the lease can be bought for a value comparible to the revenue it would generate over the remaining period now. And that it's purchase could not be be inflated vastly over that amount, nor refused.
My house was leasehold when purchased with something like 60 years left to run at £50 per year. I paid £2500 to purchase the lease a year after moving in.
My house was leasehold when purchased with something like 60 years left to run at £50 per year. I paid £2500 to purchase the lease a year after moving in.
james_tigerwoods said:
I'm forever confused by lease and freehold - I understand freehold, but I don't 'get' leasehold, what's the history behind it and why are any houses these days leasehold? Why aren't they owned by the people that buy the lease?
Usually because the Owner doesn't want to sell the land and it's nigh on impossible when it comes to flats. Unless you go for Commonhold! Edited by dickymint on Monday 22 August 15:15
In the UK "Freehold" means a patch of land on the surface of the earth which you actually own.
Detached house - no problem
Semi-detached house - no problem, each has its own footprint on the ground.
Flats - immediate problem. Who owns the land?
In a simple building with just 2 flats, one above the other, they can't both own outright the ground on which the building stands! So leasehold is used. The patch of land is owned by someone who sells 99 year leases of the individual flats to separate owners. The lease contains all the necessary arrangements about how the roof gets fixed etc because the downstairs flat needs the roof just as much as the upstairs flat.
Detached house - no problem
Semi-detached house - no problem, each has its own footprint on the ground.
Flats - immediate problem. Who owns the land?
In a simple building with just 2 flats, one above the other, they can't both own outright the ground on which the building stands! So leasehold is used. The patch of land is owned by someone who sells 99 year leases of the individual flats to separate owners. The lease contains all the necessary arrangements about how the roof gets fixed etc because the downstairs flat needs the roof just as much as the upstairs flat.
cahami said:
aparentley he paid £150.000 for it and now wants £60m, The owner of the freehold wants £15m for it.Winner reportedly £9m in debt reported herehttp://www.thisismoney.co.uk/money/article-2028628/Michael-Winner-decides-sell-mansion-worth-60m.html?ito=feeds-newsxml
I seem to recall reading that MW keeps a lot of his money offshire, and rather than paying tax on bringing it back to the UK takes a loan, using the capital as security or some such.I'm not sure I would believe every that I read in the Mail on Sunday...
The only person to own land in this country is the Queen The rest of us own a Freehold Interest or a Leashold Interest. Goes back to the days when some King was out round the country raping and pillaging, turned up at somebody's castle and they said 'f off' and get of my land. So he raped and pillaged them and said I now own all the land and can go where I want.
Copyholds were popular with the landed gentry as they held the freehold and granted copyholds. Only freeholders could vote for members of parliament hence the rotten boroughs where MPs might get in with 10 votes.
I haven't Googled so my first year law lecturer could have been lying to all the gullible trainee surveyors.
More recently some of the big housing firms relying on the general ignorance sell leaseholds at the same price as they would sell a freehold and then when the estate houses are all sold off they sell the freeholds for say £2-3k each. The new freeholders hang on till the new owners try to sell their houses and they find someone less gullible who says they will only buy a freehold. Nice extra earner all round, except for the house owners.
Copyholds were popular with the landed gentry as they held the freehold and granted copyholds. Only freeholders could vote for members of parliament hence the rotten boroughs where MPs might get in with 10 votes.
I haven't Googled so my first year law lecturer could have been lying to all the gullible trainee surveyors.
More recently some of the big housing firms relying on the general ignorance sell leaseholds at the same price as they would sell a freehold and then when the estate houses are all sold off they sell the freeholds for say £2-3k each. The new freeholders hang on till the new owners try to sell their houses and they find someone less gullible who says they will only buy a freehold. Nice extra earner all round, except for the house owners.
james_tigerwoods said:
So. Who owns the lease?
And what about houses that are leasehold?
Usually either the developer or a finance company, after all if you own a load of land you might not want to sell it but you might want an income from it so you allow properties to be built on it. Now the land is still yours so you lease it you get rent and the land remains yours, then as the lease gets shorter the cost to renew/ extend the lease gets higher as pretty much anything less than 60yrs causes mortgage lenders to refuse to lend. so evry so often you get a good size injection of cash, and with a well written lease you have no real work to do or liabilities.And what about houses that are leasehold?
Think of it this way Leasehold you own your building but the land it's on belongs to someone else, freehold the land and the property are owned together.
MJG280 said:
The only person to own land in this country is the Queen The rest of us own a Freehold Interest.....
A Freehold Interest is ABSOLUTE OWNERSHIP of the land! There is no higher status possible. Just like you "own" a car, a phone or anything else.With a leashold interest your "ownership" is recognised at law but is always subject to the lease terms and the property will eventually revert to the landlord (unless you buy him out).
. There is an alternative to Freehold and Leasehold it's called Commonhold. Basically all the occupants of a flat own the Freehold............
http://www.cml.org.uk/cml/policy/issues/37
http://www.cml.org.uk/cml/policy/issues/37
Engineer1 said:
Usually either the developer or a finance company, after all if you own a load of land you might not want to sell it but you might want an income from it so you allow properties to be built on it. Now the land is still yours so you lease it you get rent and the land remains yours, then as the lease gets shorter the cost to renew/ extend the lease gets higher as pretty much anything less than 60yrs causes mortgage lenders to refuse to lend. so evry so often you get a good size injection of cash, and with a well written lease you have no real work to do or liabilities.
Think of it this way Leasehold you own your building but the land it's on belongs to someone else, freehold the land and the property are owned together.
So if someone else owns the land and you own the RIGHT to be there, what's to stop the owner either claiming it back after the lease - and when it does expire, do they have the right to kick you out? Think of it this way Leasehold you own your building but the land it's on belongs to someone else, freehold the land and the property are owned together.
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff