Buying a Freehold
Discussion
What's the Pro's and Con's of buying a Freehold? (There are in excess of 20 flats in the building)
I should add that the building concerned is not only a converted Listed Building, but a converted Listed Building in a Conservation area
I should add that the building concerned is not only a converted Listed Building, but a converted Listed Building in a Conservation area
Edited by Sir Bagalot on Wednesday 24th November 22:51
Is the whole building listed or just the front elevation?
Mines listed in a conservation area but just the front. You'll get to know your local conservation officer quite well! Anything you might consider doing (I.e painting windows, installing air vents may have to be approved).
I'm don't know about freehold pros and cons, all I know is although mines freehold I pay a yearly chief rent of £1.25 to thwaites brewery!
Mines listed in a conservation area but just the front. You'll get to know your local conservation officer quite well! Anything you might consider doing (I.e painting windows, installing air vents may have to be approved).
I'm don't know about freehold pros and cons, all I know is although mines freehold I pay a yearly chief rent of £1.25 to thwaites brewery!
Depends how long is left on the lease,my nephew had a place in London with less than 20 years left on it.
He could not sell because no one would give a mortgage on such a short lease,he tried to buy it out,but the figure quoted was very high,so he had to pay to extend,IIRC this was around £1500.
When we bought this property the house was leasehold,over 900 years left to run, but the back garden was freehold,the lease was £3.50 per year I enquired about purchasing and was told they were not interested until we had been in the place 3 years,when we came to wanting to do some alterations the managing agent wanted £150 to give permission,which is part of the lease agreement,if we had done the alterations without this permission we could have been forced to pull it down again.
After the 3 years was up the the agent approached to sell the lease to us for £1800,this was only 2 months after alteration fee, at first I refused the offer,they later came back with £1500 and eventually dropped to a £1000,I said I would agree to this figure if they knocked off the £150,they said no at the time but changed their minds 12 months later.
Problem with a lot of leases is they cost more to administrate than the fee comes to.
He could not sell because no one would give a mortgage on such a short lease,he tried to buy it out,but the figure quoted was very high,so he had to pay to extend,IIRC this was around £1500.
When we bought this property the house was leasehold,over 900 years left to run, but the back garden was freehold,the lease was £3.50 per year I enquired about purchasing and was told they were not interested until we had been in the place 3 years,when we came to wanting to do some alterations the managing agent wanted £150 to give permission,which is part of the lease agreement,if we had done the alterations without this permission we could have been forced to pull it down again.
After the 3 years was up the the agent approached to sell the lease to us for £1800,this was only 2 months after alteration fee, at first I refused the offer,they later came back with £1500 and eventually dropped to a £1000,I said I would agree to this figure if they knocked off the £150,they said no at the time but changed their minds 12 months later.
Problem with a lot of leases is they cost more to administrate than the fee comes to.
In a block of that size then it would be worth doing it.
Pros;
You get to control the maintenance schedules of the property rather than chasing a third party to forfill their obligations.
People percieve the property to be more valuable with a share of the Freehold.
Cons;
You need to put the effort in. Great if there's someone prepared to do it but what happens when they move out?
It is important to understand that with a share of the Freehold you have two different hats to wear. One is the Lessee and one is the Freeholder. The two are seperate.
Pros;
You get to control the maintenance schedules of the property rather than chasing a third party to forfill their obligations.
People percieve the property to be more valuable with a share of the Freehold.
Cons;
You need to put the effort in. Great if there's someone prepared to do it but what happens when they move out?
It is important to understand that with a share of the Freehold you have two different hats to wear. One is the Lessee and one is the Freeholder. The two are seperate.
The entire building is listed although I suspect this isn't actually the case, but at least 80% of it is.
Do you seriously need to seek permission of the Conservation Officer to paint the outside?
The maintenance doesn't bother me too much as we already pay a reasonable sum for a very good management firm to take care of things. Our lease is in excess of 100 years
Do you seriously need to seek permission of the Conservation Officer to paint the outside?
The maintenance doesn't bother me too much as we already pay a reasonable sum for a very good management firm to take care of things. Our lease is in excess of 100 years
If it is listed then the whole building and its curtilage is listed. You need to talk to your local conservation officer.
Also look yourself up on the "images of england" website - you'll see a pic of the property and an extract from the listing which may tell you what is thought to be special about the building.
http://www.imagesofengland.org.uk/
Also look yourself up on the "images of england" website - you'll see a pic of the property and an extract from the listing which may tell you what is thought to be special about the building.
http://www.imagesofengland.org.uk/
netherfield said:
Depends how long is left on the lease,my nephew had a place in London with less than 20 years left on it.
He could not sell because no one would give a mortgage on such a short lease,he tried to buy it out,but the figure quoted was very high,so he had to pay to extend,IIRC this was around £1500.
When we bought this property the house was leasehold,over 900 years left to run, but the back garden was freehold,the lease was £3.50 per year I enquired about purchasing and was told they were not interested until we had been in the place 3 years,when we came to wanting to do some alterations the managing agent wanted £150 to give permission,which is part of the lease agreement,if we had done the alterations without this permission we could have been forced to pull it down again.
After the 3 years was up the the agent approached to sell the lease to us for £1800,this was only 2 months after alteration fee, at first I refused the offer,they later came back with £1500 and eventually dropped to a £1000,I said I would agree to this figure if they knocked off the £150,they said no at the time but changed their minds 12 months later.
Problem with a lot of leases is they cost more to administrate than the fee comes to.
1500 TO EXTEND/RENEW A NEW LEASEHe could not sell because no one would give a mortgage on such a short lease,he tried to buy it out,but the figure quoted was very high,so he had to pay to extend,IIRC this was around £1500.
When we bought this property the house was leasehold,over 900 years left to run, but the back garden was freehold,the lease was £3.50 per year I enquired about purchasing and was told they were not interested until we had been in the place 3 years,when we came to wanting to do some alterations the managing agent wanted £150 to give permission,which is part of the lease agreement,if we had done the alterations without this permission we could have been forced to pull it down again.
After the 3 years was up the the agent approached to sell the lease to us for £1800,this was only 2 months after alteration fee, at first I refused the offer,they later came back with £1500 and eventually dropped to a £1000,I said I would agree to this figure if they knocked off the £150,they said no at the time but changed their minds 12 months later.
Problem with a lot of leases is they cost more to administrate than the fee comes to.
NO WAY
How much is the place worth?
How long ago was this, cos when it goes passed 80years you go marriage value...
Sir Bagalot said:
The entire building is listed although I suspect this isn't actually the case, but at least 80% of it is.
Do you seriously need to seek permission of the Conservation Officer to paint the outside?
The maintenance doesn't bother me too much as we already pay a reasonable sum for a very good management firm to take care of things. Our lease is in excess of 100 years
You don't get part of a building listed. It's listed, or not, and then special feature's are mentioned in the listing as being of merit.Do you seriously need to seek permission of the Conservation Officer to paint the outside?
The maintenance doesn't bother me too much as we already pay a reasonable sum for a very good management firm to take care of things. Our lease is in excess of 100 years
You need listed building consent, which is different from planning consent (although you may need that too)
Is this a building that you already live or own a property within? This can be a complex area and I strongly recommend you get advice from a leasehold enfranchisement surveyor in the area.
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