Freehold and Leasehold

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Freehold and Leasehold
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thos

Joined: 08 Mar 2005
Posts: 1139
Location: Jauche, Duchy of Brabant (Bourgogne-ci) and Charolles, Duchy of Burgundy (Bourgogne-�a)

Posted: Fri Aug 12, 05 7:47 am Post subject:
There is no harm in asking a local estate agent if being freehold rather than long leasehold would make the property more attractive to buyers - would it make a quicker sale and give a higher price?

jema
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 28239
Location: escaped from Swindon

Posted: Fri Aug 12, 05 7:59 am Post subject:

JB wrote:

I'd go with most people here and say buy it now and but it quickly before they change their mind.

Regardless of rates of return etc. When, and for the vast majority of people it is when and not if, you come to sell you need to remember that a large number of potential buyers will see the word leasehold and immediately put your property details in the discard pile - they won't get as far as seeing that the lease is for 900 years or the ground rent is one peppercorn they will just skip straight past to the next freehold property.

I'd agree with the buying, but there is no strict hurry, as other have pointed out the lease is a liability to the landlord. So this offer will likely stay on the table, and may even be negotiable.

High Green Farm

Joined: 30 Nov 2004
Posts: 349
Location: Mid-Suffolk

Posted: Fri Aug 12, 05 8:18 am Post subject:
Alternatively stick the money in the bank....just somewhere where you're guaranteed to get 2% net per annum for ever, and in 999 years time you'll have �210,845,992,054

wellington womble

Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands

Posted: Fri Aug 12, 05 8:24 am Post subject:
I'd buy it, cos I like things to be tidy, and for that amount, I'd reckon it's worth it. I like the amounts in HGH calculations, though I wonder how much that will be worth in 999 years time, and what a small pile of dust would spend it on (worm defences, perhaps!?)

tawny owl

Joined: 29 Apr 2005
Posts: 563
Location: Hampshire

Posted: Fri Aug 12, 05 11:42 am Post subject:

dougal wrote:

Thos is perfectly correct that the current *investment* value of the freehold to any other buyer is only likely to be �100 or so.
However its value to you, Sally, is going to be higher, and that is going to be well-known to the freeholder.

And it includes the conveyancing costs, which would probably be a couple of hundred anyway, solicitors being the expensive little devils that they are. In all honesty, you're going to end up owning your house outright for the cost of a fortnight's package holiday. I'd say grab it, but as others have said, see if you can get a few quid off, and get them to do the Land Registry transfer for you as well.

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