Houses – Freehold Purchase
PURCHASING THE FREEHOLD
If you have a house with a short lease, that is with less than 70 years remaining, you are probably concerned that the house has become difficult to mortgage and harder to sell, and are looking for advice on purchasing the freehold to see how you can sort out your position.
Purchasing the freehold is a relatively straightforward procedure, and if this is the topic you are interested in finding out more about, please have a look at our page specifically on how to Buy your Freehold which will give you further information.
And if you’re looking to buy a leasehold house that you want to buy the freehold of, then we can help you with that too. You will need to ensure that the vendor has been in the property long enough to serve the appropriate notice on the freeholder before you buy.
For more information on purchasing the freehold please call us now on 0121 427 2800
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100 Years unexpired – No issues at this stage with the lease and the saleability of the property.
90 Years unexpired – Still no major issues at this stage with the lease and the saleability of the property.
80 Years unexpired – This is where the real problems start – “Marriage Value” becomes a factor and the market price of the property is affected
70 Years unexpired – The property now becomes difficult to mortgage as lenders become nervous about the situation. The cost of buying the freehold starts to become significant. Potential purchasers are deterred by the length of the lease and seek alternative properties.
60 Years unexpired – The situation is similar to that at 70 years, but somewhat worse. You may well see a fall in the value of your house of around 10%
50 Years unexpired – You are unlikely to sell the house with such a short lease and will be limited to cash buyers and property investors only. By now you may well have lost at least 15% of the true market value.