Buying Freehold with an Underlease

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    Buying Freehold with an Underlease

    We have been offered to buy the freehold on our property. We have an underlease,so to be completely free we would have to purchase that also. Is it a good idea to buy the freehold now while it's on offer and worry about the underlease later? Should we even have been offered it in the first place or should it have gone to the leaseholder who we pay our ground rent to? If we bought the freehold would we be in a position where we are paying the leaseholder and the leaseholder is paying the freeholder (us). I think at some point point we would need to instruct a solicitor but your thoughts meanwhile would be appreciated.

    #2
    To understand your situation, you need to compare the terms ( the unexpired years on the lease and the ground rent payable) for the head lease and under lease. Normally when there is a head lessee, the cost of the freehold is shared between the freeholder. and head lessee.

    You should monitor the policy of Government to phase out leasehold houses.

    There is a free guide to download for buying the freehold title of a leasehold house.

    https://www.lease-advice.org/advice-...ion-valuation/

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      #3
      Hi all
      I would have thought the freehold would be offered to the leaseholder, as he is in a contract with the Freeholder, as you have a underlease, you have a contract with the existing leaseholder and no contract with the freeholder, I am sorry to say.That is why you will find a large price difference between say 2 flats, as the leaseholder is obliged to work to the conditions set out in his lease and you are to him as per laid out in the underlease.
      So the freeholder may offer you the lease, you pay them and find out that the purchase is null and void, as the existing leaseholder should be the one buying it, or being offered to do so.

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