Shared ownership question I can't find an answer too.
- Thread starter Rossplym
- Start date
smmudge
i know the smudge is true
It is probably a leasehold (almost certainly if it is a flat in England or Wales). So you already own 50% of the leasehold. If you bought the other 50% you would own the all the leasehold. But you wouldn't own the freehold, that would stay with the freeholder (landlord, council, buildings management company)
marty21
One on one? You're crazy.
You will still be a leaseholder until you buy the freehold.
Dr. Furface
One small step for me
If it's a house and you buy it outright then you should get the freehold. I don't know if that would come automatically with the purchase or if you have to arrange it separately, but you'll have a right to it.
If it's a shared ownership house it's likely that the organisation that owns the other half of the leasehold also owns the freehold. It's possible they might surrender this for free if you buy their half of the leasehold. You need to ask them and also the conveyancing solicitor you used when buying your share in the first place, who should have explained this to you.
Rossplym
New Member
I spoke on chat to a women from the leaseholder and she is going to get them to contact me, but she said there are no additional fees for acquiring the freehold if I purchase 100% of the property. So if I get the free hold will that end the lease of 90 years? I'm so sorry if I'm being stupid. I'm googling it but it's so confusing.
Dr. Furface
One small step for me
Yes that's right
Leasehold has a vague purpose when you're talking about a block of flats but as peng puts it, its a proper scam when dealing with houses. The benefit to the freeholder is the yearly charge they collect and the further charge they collect when the lease needs renewal.
You can legally force a freeholder to sell the freehold to the lease holder. There are strict laws regarding the cost etc but it won't come cheap. I live in a block of 4 flats in London and we looked into grouping together to buy the freehold and it is going to be around £19k each. I don't know how that figure relates to a single house though.
My view on buying the freehold is it depends on how long you are planning to stay in the house, the longer you stay the more worthwhile it is. We're only staying a few years and we don't think owning a freehold will put enough value on the house for us to make our money back. That being said though this is a flat and potential buyers kinda expect flats to be leasehold. It may be different with a house.
One important aspect of being a freeholder over a leaseholder is that you can do whatever you like with your house (within the realms of local planning etc). If you are leaseholder you have to get permission from the freeholder for pretty much any change from new windows to knocking down a wall. You won't be surprised to learn that it is annoying and expensive to get permission for this sort of thing.
I'd be shocked to the point of falling off my chair if they simply give the freehold away when you buy out the remaining 50%.
You can legally force a freeholder to sell the freehold to the lease holder. There are strict laws regarding the cost etc but it won't come cheap. I live in a block of 4 flats in London and we looked into grouping together to buy the freehold and it is going to be around £19k each. I don't know how that figure relates to a single house though.
My view on buying the freehold is it depends on how long you are planning to stay in the house, the longer you stay the more worthwhile it is. We're only staying a few years and we don't think owning a freehold will put enough value on the house for us to make our money back. That being said though this is a flat and potential buyers kinda expect flats to be leasehold. It may be different with a house.
One important aspect of being a freeholder over a leaseholder is that you can do whatever you like with your house (within the realms of local planning etc). If you are leaseholder you have to get permission from the freeholder for pretty much any change from new windows to knocking down a wall. You won't be surprised to learn that it is annoying and expensive to get permission for this sort of thing.
I'd be shocked to the point of falling off my chair if they simply give the freehold away when you buy out the remaining 50%.
Sirena
Don't monkey with the buzzsaw
Instinctively, I would too.
But this might be a special scheme aimed at helping people to become house owners. So it might be a proper thing.
Dr. Furface
One small step for me
That's true if the flats are all owned by the leaseholders and they can all stump up enough money to buy the freehold - in that case the freeholder can't deny the purchase. However, we live in a house split into 4 flats where one of those flats is owned by the freeholder; some years ago we (the 3 leaseholders) wanted to buy the freehold but the freeholder wasn't prepared to give it up and was not going to sell the flat they own either, so the only option we have is to extend our lease.
Our situation is that our lease is down to 85 years, and at current market value it will cost us about £15,000 to extend it by another 99 years. The thing is, each year longer that we leave it that cost will almost certainly rise (as it's mainly based on property value) and if we let the lease fall below 80 years, then (for some absurd reason) it will cost us significantly more, perhaps double, or maybe even more. And if we don't extend it, our property will become increasingly harder to sell and thereby lose value.
So effectively, we are going to have to find at least £15,000 to basically give to our freeholder so they will let us extend our lease, which will enable us to continue to live in the flat which we own! (and incidentally, our freeholder is a piss-taking cunt I resent paying even the few hundred quid a year we have to pay for 'service charges').
As pengaleng said above, it's a fucking scam - and it's the worst kind of scam too, because it's legal.
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This is a shared ownership property and the freehold/leasehold structure was created to facilitate that. What happens to the freehold would have been written into the lease - this has nothing to do with developers selling 100% ownership of leasehold houses, which is a completely different issue.
Shared ownership can mean a lot of different things depending on the scheme. However, I hope you're right and the OP gets the freehold as part of the buy out, we'll see.
Is it relatively new build? If so, leaseholds on new builds - and them being sold off to companies who exploit them massively (doubling ground rent every x years, charging absurd prices for them when buyers were originally told they'd be free or cheap) has been a massive fucking scandal recently.
I'd look into who originally owned, and who currently owns, the leasehold asap. And into whether anyone else near you has bought theirs recently.
I'd look into who originally owned, and who currently owns, the leasehold asap. And into whether anyone else near you has bought theirs recently.
Puddy_Tat
naturally fluffy
The honest answer is 'it depends' - on the detail of your lease and what's on offer if you do buy the remaining share. without seeing this, don't think any of us can give a definitive answer.
may be worth being aware of leasehold advisory service though
may be worth being aware of leasehold advisory service though
19sixtysix
Life as viewed from a Gay Gorbals Garret
Leasehold allow the rich to sell their property again and again and again. Biggest fucking con trick in the English legal system.
marty21
One on one? You're crazy.
Freehold means no lease
Rossplym
New Member
But from what she is saying there would still be a lease.
You will still have to follow the lease, therefore you still have a lease term. However if you read the attachment I sent in the previous email that will advise you with regards to a lease extension.
Yes, once you have purchased 100% of the property through Staircasing, you acquire the freehold.
You will still have to follow the lease, therefore you still have a lease term. However if you read the attachment I sent in the previous email that will advise you with regards to a lease extension.
Yes, once you have purchased 100% of the property through Staircasing, you acquire the freehold.
marty21
One on one? You're crazy.
If you buy the freehold , the lease is no more. That is my understanding. We bought a leasehold flat , then bought the freehold with the flat downstairs. We are now joint freeholders, there is no lease.
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