Advice on purchasing Freehold on family home

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    Advice on purchasing Freehold on family home

    Can anyone advise on what would be a reasonable cost to buy a freehold on a property? Is there some rough idea of how they work it out?

    A family member has lived in their house for over 30+yrs, pays roughly £31.50 a year for the rent I'm guessing? The leasehold has 55 yrs left and she has just paid the mortgage off and would like to buy the freehold, however the quote is over £10k to buy it by the managing company. We know others in the area with similar properties have paid much less than that but not sure of what she can do. Can she challenge it or negotiate it or are there companies she can go through as it seems expensive personally and would equate to over 320 years of rent which wouldn't be worth it in that case.

    Any advice welcome as she doesn't like making a fuss but I don't want her being ripped off if this cost is way above what it should be??

    Would a solicitor be expensive to use (as I'm expecting a reply to say go through a solicitor).

    #2
    I believe you will need a solicitor to buy the freehold, and one that specialises in this area. I agree that that sounds a lot, maybe a quick (free?) chat with a solicitor would be a good way forward to discover what costs might be. I think part of the problem is that they now have a very short lease and so it is more expensive to buy. Extending the lease is another option. Remember you will also have to pay for the freeholder's legal costs.

    There is legislation going through Parliament now that will affect long leases so it may be better to wait for that - although I don't know when it may become law or exactly what it will say. I think it is supposed to be removing the extra charges incurred on a short lease.

    Good luck

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      #3
      You will find useful information on LEASE's website in relation to buying the freehold of a house. You can also arrange a call with one of their advisers to discuss your particular circumstances.

      Prima facie, £10K sounds like a good deal though you could try to negotiate this downwards.

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        #4
        That ought to be a very maximum including legal costs, best use a specialist (not a solicitor who will just ramp up your costs , or an organisation funded by freeholders). I have pm'd someone's number who understands this field .

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