Recently we have dealt with a number of clients who have purchased the freehold title to their property.
The problem with leasehold properties is that every year the cost of the freehold will increase and as the term of the lease diminishes even further, the price will escalate quite dramatically.
The only way to combat this is to purchase the freehold as soon as possible, as a means of damage limitation.
The advantages of owning the freehold are several. You will no longer need the freeholder’s consent to carry out building works, you will not be obliged to pay ground rent and you will not be subject to the terms of the lease. Most importantly the value and saleability of your property will be enhanced, as people are far more attracted to a freehold property where they buy the house plus the land upon which it sits.
If you or your family ever come to sell your property whilst it is leasehold, it is likely that you or they will encounter problems, as many leases have under 55 years left, which means that no mortgage company will lend to a prospective purchaser with so little time left on the lease. Even if a cash buyer were to be found, no solicitor would advise them to proceed with the purchase, with only 55 years left on the lease.
What are leasehold houses?
Traditionally, houses have been sold as freehold, and the buyer has complete control over their property. When a house is sold as leasehold, the buyer is effectively only a tenant with a very long term rental, with the ground the home is built on remaining in the hands of the freeholder, having to ask the freeholder for consent if they want to make any changes to the property, such as building a conservatory or changing the windows.
For further information and guidance, please contact Paula Murphy on 01792 468684 or email enquiries@pgmsolicitors.co.uk.
