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buying first home

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  • buying first home

    Hi,I am looking to buy my first house and its a mid terraced house looks 1950's. Surprisingly its a lease hold!! I thought all the houses are normally freehold, but this one along with few other houses in the row are lease hold!!!

    How can it is a house and also being a lease hold?
    Could there be future problems selling that kind of house??
    If I have do some works on it like loft conversion etc. are they allowed?


    Thanks

  • #2
    Re: buying first home

    Hey SmartSarath,

    This is a very interesting point. Leasehold houses are not that rare,it depends on where you live.Bristol,Manchester and some Yorkshire areas have a common stock of Leasehold houses,typically with a 999 year lease and £10 ground rent. Why? the reason is a bit historic.Many growing cities had to secure land to expand home ownership or basic housing,the land was owned by the Gentry or the Church,the land owners were happy to sell for a nice tidy sum to swell their coffers with a quick fix ,but were reluctant to lose the low rents as income from the tenants from grazing rights ,a known income to an estate or the local church.Hence they achieved a purchase price for the land but secured an income for the period of the lease,lets remember a ground rent in 1930 of £10 would have been considered a reasonable return compared with the commoners rent.

    To buy the freehold of a lease now from the 1930s costs next to nothing these days and is well worth doing,not that it increases the value of the property but allows the modern day owner to be free of restrictions to improve,extend etc permissions from the landlord may attract a charge etc.A remaining term of 999 years to any buyer now should not be considered any more than a pain in the soft bit.

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