Buying a Leasehold property - Formula + Deceased Estate

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    Buying a Leasehold property - Formula + Deceased Estate

    Hi all,

    I'm in the process of purchasing a property that is leasehold with under 80 years left on it. Got a few questions if anyone's able to help at all that'd be amazing.

    Is there a rough formula for working out the cost of purchasing a freehold, I understand its complicated, but as a rough guide, the property has 72 years left, ground rent is a peppercorn, property value of say £220k and if it were freehold £300k value. I'd love a rough idea of what this may cost i.e will it be £5-10k, £10k-20k or £50k etc

    Secondly, the purchase is from a deceased estate, probate was started over 2 years ago. My understanding was if they had started the process of buying the freehold within 2 years, they could have made us the beneficiaries of the freehold during the sale. As its now over 2 years since probate has started... does this mean they can no longer do this and we have to wait till we've lived their for 2 years to start the process?

    Thanks in advance

    #2
    Is the property a house or flat ? what is the ground rent ?

    Comment


      #3
      I think you may be referring to extending the lease not buying the freehold. There is no ownership requirement to buying the freehold provided the criteria are met. To extend the lease you need to have owned the leasehold interest for two years unless a) the landlord will agree to an extension via the informal route or b) the current owners served a s.42 and pass the beneficial interest to you.

      Comment


        #4
        Originally posted by Gordon999 View Post
        Is the property a house or flat ? what is the ground rent ?
        It's a house, and ground rent is a peppercorn.

        vmart every where I've read says if you want to buy the freehold you need to have owned the property on a lease for 2 years ...

        Comment


          #5
          LEASE have a free guide on purchase of freehold title for leasehold house:

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

          Comment


            #6
            Hi, we did not know it was a house. If it were a flat in a block you can participate in buying the freehold from the off subject to enfranchisement criteria being met. As it is a house you do need to have owned the lease for two years.

            Comment


              #7
              Next year , the Government will be introducing new rules which may reduce the cost of enfranchisement for leasehold houses and remove the 2 years waiting period..

              Comment


                #8
                There is no known timescale for the new legislation. It is unlikely to be law by the end of 2022

                Comment


                  #9
                  Originally posted by Gordon999 View Post
                  Next year , the Government will be introducing new rules which may reduce the cost of enfranchisement for leasehold houses and remove the 2 years waiting period..
                  Thanks I had read about this but yeh not sure when exactly this may come into play!

                  Comment


                    #10
                    The link to lease website in post #5 gives example for leasehold house with 65 years remaining and calculated cost is about 6% of the freehold value. But the calculated cost without "marriage value" was around 2%.

                    So for house with 72 years remaining on the lease , the rough cost may be around 4%. of the freehold value.

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