Freehold Archives - Emyr Pierce

Aug 28

How do I buy my Council house?

I have been living in my Council house for 26 years and I would like to buy it. What do I have to do?

As you have lived at the property for so long you are eligible to buy your Council house at the appropriate discount – calculated on the length of time you have occupied the property – and capped at £16,000. Contact the Council who will arrange for the property to be inspected by their Valuer. They will then issue you with an offer notice containing the terms on which they are prepared to sell you the Freehold Interest. This will also quote the appropriate level of discount which they are offering you. If these terms are acceptable, you need to instruct solicitors to act on your behalf in the purchase and respond to the Council formally accepting the offer made.

Please be aware that a proportion of this discount will have to be repaid if you dispose of the property within five years of your purchase, and it is only the Council Tenant who has occupied the property during the qualifying period who will be entitled to acquire the Freehold Interest under the Right to Buy legislation and benefit from the discount.

* Emyr Pierce is Managing Partner of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property. Contact www.emyrpierce.co.uk or email law@emyrpierce.co.uk

Aug 19

Is buying a Freehold a waste of money?

I am buying a Leasehold terraced property which currently has 75 years left on its lease. Would it make sense to buy the Freehold, or is it a waste of money?

You will, therefore, need to consider the possibility of either buying the Freehold or extending the Lease term once it falls below 65-70 years. Buying the Freehold at an early stage has its benefits as the cost is only likely to increase.

However, before parting with hundreds of pounds, you must appreciate that the only benefit to you will be the saving of a nominal annual payment in ground rent and the ability to insure with a company of your own choice. The benefit, therefore, of buying the Freehold will usually be closely related to the remaining number of years of the Lease term.

Provided you have owned the property for at least two years you are entitled to purchase the Freehold interest as of right under the Leasehold Reform Act 1967, but most freeholders will agree to transfer the Freehold interest without having to follow the strict procedure laid down by that legislation.

You should ask your Freeholder how much it might cost and, if necessary, take the advice of a Surveyor on any quote received.

Oct 18

Buying a Freehold – does it make sense?

I am buying a Leasehold terraced property which currently has 75 years left on its lease. Would it make sense to buy the Freehold, or would that be a waste of money?

If you are looking to sell a Leasehold property with less than 70 years to run then it is possible your buyer’s mortgage company may insist on either the lease term being extended, or that the property is Freehold. You will, therefore, need to consider the possibility of either buying the Freehold or extending the Lease term once it falls below 65-70 years.

Buying the Freehold at an early stage has its benefits as the cost is only likely to increase. However, before parting with hundreds of pounds, you must appreciate that the only benefit to you will be the saving of a nominal annual payment in ground rent and the ability to insure with a company of your own choice.

The benefit, therefore, of buying the Freehold will usually be closely related to the remaining number of years of the Lease term. Provided you have owned the property for at least two years you are entitled to purchase the Freehold interest as of right under the Leasehold Reform Act 1967, but most freeholders will agree to transfer the Freehold interest without having to follow the strict procedure laid down by that legislation.

You should ask your Freeholder how much it might cost and, if necessary, take the advice of a Surveyor on any quote received.