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Purchase of Freehold on 999 year Lease

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  • Purchase of Freehold on 999 year Lease

    Hello
    We own the lease on our Huddersfield Victorian terrace house which has 870 years left to run. Our neighbours,who own the freehold have offered us the freehold for £300 plus legal fees (about £250). Our ground rent is £5, 19 shillings and sixpence per year which I pay with a round of drinks every now and again.
    They are expecting to sell the property in the near future.
    Does this sound like a reasonable price and worth doing?
    Regards
    Dave
    Huddersfield

  • #2
    On the basis that selling a freehold title is easier, quicker and cheaper than selling a leasehold title, I would have thought it is a good investment. The legal costs should be small: no more than £200 + VAT and the Land Registry copy, search and registration fees of about £70.

    However, if you have a mortgage over the leasehold, either you will need to substitute it with a mortgage over the freehold - involving more legal fees and probably an admin fee charged by the lender - or you leave the two titles separate: when you come to sell, you sell both, and they merge in your buyer's hands. This means that the benefit of buying the freehold is not as great if a mortgage involved, but I reckon it is still worthwhile - if nothing else, it avoids the need to liaise with a separate freeholder when you sell or re-mortgage

    I hope this helps
    This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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