Disposing of freehold interests in leasehold properties

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  • Gordon999
    replied
    Collecting £7-£10 annual ground rent is not profitable business when the minimum hourly wage is around £8.

    You could try selling the freehold title of a house on 999 years lease for say £600 to the leaseholder.

    Put in offer letter to leaseholder , "The benefit of buying the freehold title includes no ground rent to pay, no landlord registration charges when selling the property and it could increase the market value by £2000-£3000 due to more buyers for freehold houses.

    Leave a comment:


  • Disposing of freehold interests in leasehold properties

    Hi, looking for some advice please. I have inherited the freehold interest in 18 properties in sunderland, uk. They are in the majority of leasehold properties that are houses/ maisonette bungalow style 2 bedroom houses, and I suspect until I look in detail at all of them, all subject to 999 yr leases that began in the 1950s. My grandfather built them postwar and we understand offerrd them to family and friends for nominal ground rents of £7-£10 / yr that remain today. No service charges or the like as far as I can see. Whilst I see the value of his gesture at the time, many have been onsold over the years to buyers with no familial or relational connection.... I feel as if their original purpose of affordable homes is no longer their purpose, plus I am assuming I will also inherit some unwanted costs and risks. Can I sell my freehold interest, and the properties if i choose? Do i have any rights as the freeholder of these leasehold properties? Can i realise any capital benefits by selling them? I understand there is something to do with first right of refusal to the tenants but does that apply to properties that are houses/ single dwellings, as opposed to a building of flats? Thanks for your advice in advance.

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  • collective enfranchisement
    by flyingfreehold
    Does a leaseholder have to be a registered proprietor to join a collective? Or is it sufficient for her/his/it to be a transferee whose interest is not yet registered?
    21-05-2022, 18:51 PM
  • Reply to collective enfranchisement
    by sgclacy
    I think I have found the answer:-

    Hague - Leasehold Enfranchisement (seventh edition) at 24-01

    It is considered that to be a participating tenant, the lessee must be registered at the HM Land Registry as proprietor of the lease at the relevant date

    The note...
    22-05-2022, 21:37 PM
  • Section 20
    by Anna1985
    So the lease allows for the property to be kept in good condition.
    Thus, the shared hall could be spruced up no problem, but there is an issue with driveway - partially it belongs to the freeholder, partially to the ground floor leaseholder - it is made out of the old paving stones, it looks...
    22-05-2022, 21:03 PM
  • Reply to Old managing agents accounts
    by jazzythumper
    Thanks, how would I do that, what evidence would I need to provide?...
    22-05-2022, 20:10 PM
  • Old managing agents accounts
    by jazzythumper
    Since obtaining the RTM and changing the managing agent, we have never been given full accounts / receipts for the previous year(s). We believe that as the old freeholder and leaser holder of one of the flats were represented by the same solicitor that prior to the sale of the freehold, we were subsidising...
    20-05-2022, 11:21 AM
  • Reply to Building works & S20 process
    by scot22
    What if something goes wrong ? You need a surveyor to safeguard your interests. There are some untrustworthy roofers, and other trades.
    It is better to follow standard procedures. From experience I would not follow informal routes. O.K when everyone reasonable and cooperative but things can...
    22-05-2022, 19:39 PM
  • Building works & S20 process
    by RichA
    Hi. I have a freehold after selling a leasehold flat in a block of 4 flats. We don't currently have a managing agent, so these duties currently fall to me (I am holding off appointing a managing agent whilst the leaseholders consider whether they want to RTM).

    The block needs some maintenance...
    21-05-2022, 17:20 PM
  • Reply to Building works & S20 process
    by RichA
    If the work is 'contracted' by the leaseholders rather than the freeholder does that remove the requirement for a S20?

    eg if the 4x leaseholders wish to accept a quote and get the works done (including making payment) does this avoid S20 consultation?
    22-05-2022, 18:51 PM
  • Reply to collective enfranchisement
    by sgclacy
    I think the new lessee is unable to join because of the registration gap

    https://www.birketts.co.uk/insights/...gistration-gap

    the lessees predecessor who is holding the property on trust of course for the new lessee until the registration is complete...
    22-05-2022, 06:15 AM
  • Reply to collective enfranchisement
    by flyingfreehold
    at risk of answering my own question, the leaseholder has to prove title which is a bit difficult if not registered........
    21-05-2022, 21:23 PM
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