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Don't buy a leasehold house


sarahbell
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https://www.theoldhamtimes.co.uk/news/18792747.oldham-new-build-residents-victims-freehold-leasehold-fiasco/

 

"But we estimate there are hundreds more people in new build estates all over Oldham and Lancashire who have also been short changed with these leasehold deals.

“I believe people stuck in these onerous leaseholds could be owed many thousands of pounds for the negligent advice from their conveyancers

Under the leasehold scheme someone signed on with a doubling ground rent costing £295 a year in 2008 would pay £182,000 over 50 years.

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21 hours ago, sarahbell said:

https://www.theoldhamtimes.co.uk/news/18792747.oldham-new-build-residents-victims-freehold-leasehold-fiasco/

 

"But we estimate there are hundreds more people in new build estates all over Oldham and Lancashire who have also been short changed with these leasehold deals.

“I believe people stuck in these onerous leaseholds could be owed many thousands of pounds for the negligent advice from their conveyancers

Under the leasehold scheme someone signed on with a doubling ground rent costing £295 a year in 2008 would pay £182,000 over 50 years.

Many buyers used conveyancing firms recommended by these developers to complete their property deal who then failed to adequately warn them of any risks.

There you have it -- about as wise as using a surveyor provided by the selling estate agent (which I don't think is actually permitted).

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sleepwello'nights

Our conveyancer didn't mention the service charges we would have to pay when we purchased our current house. It was quite clear on the developers documentation so I guess she might have thought we were aware of it.

 I still think it was remiss not to point it out to us though. 

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9 hours ago, sleepwello'nights said:

Our conveyancer didn't mention the service charges we would have to pay when we purchased our current house. It was quite clear on the developers documentation so I guess she might have thought we were aware of it.

 I still think it was remiss not to point it out to us though. 

your lawyer is the one that should have pointed that out, absolutely.  mine did when i bought a place in london many moons ago.

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On 15/10/2020 at 23:09, wherebee said:

your lawyer is the one that should have pointed that out, absolutely.  mine did when i bought a place in london many moons ago.

Indeed.

Nothing should come as a surprise once you have the keys to a house.
However some people expect one of the searches to include neighbour's current planning permission. As most council's planning pages allow trackers to be added, it's worth having a look yourself and seeing what's in the pipeline nearby.

 

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sleepwello'nights

I should know but I don't. The purchase of a freehold can be negotiated by the leaseholder. The price increases as the time left of the lease gets shorter. But the leaseholder has the right to extend the lease. 

If you are a leaseholder there's nothing to stop you trying to acquire the freehold. 

https://www.lease-advice.org/advice-guide/leasehold-houses-valuation/

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1 minute ago, sleepwello'nights said:

I should know but I don't. The purchase of a freehold can be negotiated by the leaseholder. The price increases as the time left of the lease gets shorter. But the leaseholder has the right to extend the lease. 

If you are a leaseholder there's nothing to stop you trying to acquire the freehold. 

https://www.lease-advice.org/advice-guide/leasehold-houses-valuation/

Yes he's going to have to do it though and I assume it'll cost him a good chunk of cash.

I assume extending is quicker than buying the freehold but maybe not.

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On 19/10/2020 at 17:40, MrPin said:

Careful with strange covenants. You may have to fund the church bell every 300 years.

I had that about funding a local church for repairs it slowed down buying my house for a week .no doubt someone buying his way into

heavon 130 years ago or just someone looking after the community who knows 

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sleepwello'nights

There was a thread started by a clergyman? on TOS who was engaged in a project initiated by the Church of England to settle chancel repair liabilities. IIRC the Church was looking to remove the onus from unsuspecting home owners.

He went into the issue in some depth.

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sleepwello'nights
On 15/10/2020 at 03:21, macca said:

.

 

Its the system that is corrupt.. 

 

Leasehold should be illegal anyway.. allowing someone to own the land on which your property resides..

 

Fucking mental.. 

 

 

 

Its a residue of the Feudal System. In law all land in England belongs to the Crown.

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10 hours ago, sarahbell said:

Yes he's going to have to do it though and I assume it'll cost him a good chunk of cash.

I assume extending is quicker than buying the freehold but maybe not.

Extending is usually very cheap unless you leave it really late.

39 years might attract some lease extension premium but not too much. I've only dealt with flats but maybe £5k or £10k if that.

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10 hours ago, stokiescum said:

I had that about funding a local church for repairs it slowed down buying my house for a week .no doubt someone buying his way into

heavon 130 years ago or just someone looking after the community who knows 

People didn't volunteer to have this liability; it came as a covenant when buying the land from the church.

Insurance against being stung for £30k or whatever is readily and cheaply available; when you read the cases of people losing their house it is usually because they bought ages ago when Chancel repair liability wasn't widely known and they actually thought that being deemed a lay rector in the deeds brought some social cachet.

Then when the bill comes in they start a big legal challenge when actually they are bang to rights and should just pay up; it's usually the legal costs that bankrupt them.

 

Edit: it could well be a legacy of the "multiple estate" if you agree with that model.

Edited by Frank Hovis
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sleepwello'nights

https://www.housepricecrash.co.uk/forum/index.php?/topic/195658-chancel-repair-liabilities/page/2/

Here's a link to the thread I mentioned. It was initiated by @Frank Hovis . The poster I recalled used the name Greg Yerbury. His first post is halfway down page 2.

It delves into the origination and present status of Chancel Repair Liabilities. Some of the cases seem very harsh on the land owner at the time extensive repairs are needed. This wouldn't have been the case when the Lord of the Manor was the owner. 

I find it really interesting following the history of subjects like this and how the original intentions are over ridden by social changes until we end up at the present time where the primary intention brings conseqeunces that were never intended and reflect badly on the one or both parties.

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20 hours ago, sarahbell said:

Man up road has 39 years left on his lease. Trying to sell it for months and finally discovered this is a problem.

People from London looking at buying it. 

Iirc correctly banks wont lend if the leasehold is under  60 years.

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  • 5 months later...
UmBongo

Thought I'd add to this thread, albeit this is a flat I'm posting.

1 bedroom flat in Norwich, £190k

42413_101108024157_IMG_00_0000.jpeg

Notwithstanding the £1,583 annual service charge and £150 annual ground rent, there are a few strict rules on the lease:

Quote

No pets without Freeholder's consent; No subletting; Clean windows at least once every 4 weeks; Decorate interior every 5 years; No loud noise between 11pm and 9am (including pianos); No BBQ's.

The 'no noise' one seems reasonable I suppose. Sounds like the blimmin' rules a humourless private landlord would set. 9_9

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