Shared ownership question I can't find an answer too.

Discussion in 'benefits and housing' started by Rossplym, Sep 20, 2017.

  1. Rossplym

    Rossplym New Member

    Hi I own a 50% share on my shared ownership house which has a 90 year lease. If I was to buy the other 50% which I'm hoping to soon to own 100% would the lease still be there or do I then own the lease? Sorry if it's a stupid question.
     
  2. TruXta

    TruXta tired

    Assuming it's a leasehold you'd still need to buy the freehold separately.
     
  3. Rossplym

    Rossplym New Member

    So what really is the point of leasehold properties?
     
  4. pengaleng

    pengaleng Lil' J Pengele PhD. The Angel of Sesh

  5. Rossplym

    Rossplym New Member

    It says lease hold but I just spoke to the housing people who own the 50% remaking share and she seems to think if I buy the remaining 50% that I would have to apply for the lease hold and not pay anything for it.
     
  6. smmudge

    smmudge Sissy that walk!

    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)
     
  7. Rossplym

    Rossplym New Member

    It says leasehold I just found the letter. It's a house, so my lease is now 90 years left so if i do buy the other 50% that means I don't have the lease anymore?
     
  8. marty21

    marty21 One on one? You're crazy.

    You will still be a leaseholder until you buy the freehold.
     
  9. Dr. Furface

    Dr. Furface One small step for man

    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.
     
  10. Lambert Simnel

    Lambert Simnel Banned Banned

    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.
     
    Dr. Furface likes this.
  11. Rossplym

    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.
     
    Sirena likes this.
  12. Dr. Furface

    Dr. Furface One small step for man

    Yes that's right :)
     
    nogojones likes this.
  13. Rossplym

    Rossplym New Member

    Thank you for your help.
     
  14. Teaboy

    Teaboy It definitely looks brighter over there..

    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%.
     
  15. Sirena

    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. :)
     
  16. Dr. Furface

    Dr. Furface One small step for man

    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.
     
    Last edited: Sep 21, 2017
  17. Lambert Simnel

    Lambert Simnel Banned Banned

    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.
     
  18. Teaboy

    Teaboy It definitely looks brighter over there..

    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.
     
  19. Rossplym

    Rossplym New Member

    I have still not had a reply yet but I will certainly let you all know.
     
  20. mrs quoad

    mrs quoad Well-Known Member

    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.
     
  21. mrs quoad

    mrs quoad Well-Known Member

  22. Rossplym

    Rossplym New Member

    It was built about 10-15 years ago. I'm waiting for them to contact me
     
  23. Rossplym

    Rossplym New Member

    I just found this on the internet?
     

    Attached Files:

  24. Puddy_Tat

    Puddy_Tat meh

    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
     
  25. 19sixtysix

    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.
     
    instape likes this.
  26. Rossplym

    Rossplym New Member

    I just had a reply.

    Once you have staircased to 100% you would then acquire the freehold of your property.

    So does that mean I get the freehold and then there is no lease of 90 years?
     
    A380 likes this.
  27. marty21

    marty21 One on one? You're crazy.

    Freehold means no lease
     
  28. Rossplym

    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.
     
  29. marty21

    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.
     
  30. Rossplym

    Rossplym New Member

    That's what I thought, it's a house. And what I read if you own the freehold you don't have a lease hold property anymore
     

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