Owning your own home

Boom!

Looks like Barrymore was your estate agent.

Good work.

Still have no contract from the council. Solicitor's calls are being ignored. Simon has now fired off a stern email to every contact he can find.

http://www.rightmove.co.uk/property-for-sale/property-34772862.html

Leasehold Interest
Puslinch is offered for sale with the remaining 13 years of a
21 year lease ending on the 24/5/2028, on a full repairing
and insuring basis, subject to a mutual break clause on the
24/6/24. (Current rent of £6,800 p.a.)

Can anyone explain what this all means? In simples please

It means you're renting a big house for £3,000 per month.

And it's probably a wheeze to get around IHT.

Or it's for paying the IHT.

but you have to pay 500k upfront and do all the repairs and insurance?

Sold

does anyone have recommendations of a roofer in North London?

Where does the £6,800 p.a. come into it?

As I understand it, leaseholders always pay rent to the freeholder. Sometimes it's pennies, others it's £6,800 pa.

assuming that the ground rent doesn't increase (I bet it does) you'd pay £84.5k over the 13 years. Inc the £500K that's £3850 per month. Plus I read it as you'd have to maintain The Grade 1 listed house for the duration. Then you get to give it back. At which point I assume they will sell it on another 21 year lease (it seems 21 or less years on a lease means the lease holder doesn't have the right to extend it).

Architectural Roofing in Chingford are good.

Got through to someone at the council eventually. They are sending the contract through tomorrow morning. Is progress but means we probably can't complete until new year now.

it seems 21 or less years on a lease means the lease holder doesn't have the right to extend it

I expect @danstuff will be along soon, but is this legit? Smashing workaround for tax-dodging richos if so. Might use it when I get rich.

my thoughts too.

Yep, totes legit. You only have a statutory right to extend a lease of a house where the lease is a 'long tenancy' as defined in section 3(1) of the Leasehold Reform Act 1967, and that means a lease 'granted for a term of years certain exceeding twenty-one years'. If this is a 21 year lease it's not a long tenancy, and there's no right to extend the lease. If the parties to the lease want to agree a lease of a shorter duration, falling outside the scope of the 1967 Act, then that's up to them.

its not simple. (and this is obviously without prejudice)

Effectively you are buying the interest in that property for 13 years or however long is left on the lease. After that time it will revert to either a headleaseholder or the freeholder.

UNLESS (and this is where the value in your potential purchase really lies) the lease is genuinely for 21 years. If so then you have the right to purchase the Freehold for 'the market price' (if the leasehold interest covers the area of what could be called 'a house'- not simple or straightforward in law). If it is not a house, then it is a flat and you have the right to purchase a 90 year lease extension for 'the market price'.

IF HOWEVER, it is '21 years less one day' then you will not have any of these rights and the lease reverts in 13 years.

HOWEVER, there might be an argument to say that it is a commercial lease under the auspices of the 1954 Act which would give you the right to renew your lease (on completely different terms than above) at a market rent etc etc etc. That is a whole different kettle of fish, we have run this argument a few times and it has come off sometimes but not always.

Basically PM me (I am a surveyor who has specialised in this stuff) if you want to know more but if you are going to pursue this you should get advice from a specialist lawyer on this. I can recommend. Certainly NOT conveyancers like the favoured forum conveyance as they often aren't aware of the complexities of these things.

ah didn't see that @danstuff had got there first

UNLESS (and this is where the value in your potential purchase really lies) the lease is genuinely for 21 years. If so then you have the right to purchase the Freehold for 'the market price'

No you don't. It needs to be for a term exceeding 21 years. 21 years exactly isn't enough.

Thanks both. I won't be purchasing...I'll just have to find something else to do with my 1/2 million.

You could splurge it on Greggs sausage rolls, happy to help with the consumption.

500,000 parmo's would be a far shrewder investment.

Just got our Survey report through.

New guttering+downpipes plus chemical damp proof treatment and also need to lower front and rear garden paving (at fault for damp). Likely cost? Also new boiler again rough likely cost? Need to know what I can legit knock the seller down for (though aiming for 5%).