Purchase Of Freehold
Purchase Of Freehold enquiry form.Clients often ask us if they should try and purchase the freehold interest in their home.
Many properties built in the last 50 years were sold by developers on leasehold arrangements and the Leases created were very often for a term of 99 years. It was the popular thing to do at the time.
There is now a problem because after say 50 years the period now left on the Lease is reduced to 49 years. The implication of this is that unless action is taken to extend the Lease or purchase the freehold it will be difficult for a buyer to arrange a mortgage as most mortgage lenders require a minimum term of about 60 to 65 years unexpired before they will lend against such a leasehold property.
Purchasing the freehold becomes more expensive with the passage of time as the fewer years that remain left on the Lease the greater the need to extend the Lease or buy the freehold.
There are various statutory provisions that can be used to compel a freeholder to sell the freehold or extend the Lease, however, it can be expensive to comply with all the requirements and obtain the appropriate legal and valuation advice.
If the freehold is purchased this will extinguish any requirement to pay further ground rent and most of the obligations imposed in the Lease will cease to apply.
Some people use the expression 'buying the Lease' but more correctly you are buying the freehold, which has the effect of making the Lease redundant when it merges into the freehold.
If you are having difficulties selling or mortgaging your property because the term on your Lease is shortening then we will be pleased to speak to you and give you advice on how best to proceed.
We respect your privacy and will not pass any information you give to us to any third party other than to progress the legal process.
