Hello, have a read of our guide to extending your lease and if you need more tailored advice, please do consider becoming a member. I own my house my daughter is buying the upstairs and having an extension done. I i own the house why does she have to have lease hold rather than buying freehold? New build Freehold houses now contain clauses that require permission to make changes to the property. How can these be Freehold, now known as Toxic Fleecehold homes. I was offered less than the market value or I had to move out and the freeholder would pay my rent for over two years.
No arbitration or mediation. Just a summons for Vacant possession with no mention of payment. The time is nearly up. Can I still have arbitration to get Proff of the need for all the works. A ruse for evicting the tenants to sell their vacant flats. Who owns my flat? I am a freeholder on a fairly new development where the majority of the properties which are all terraced houses are leasehold.
Kind Regards, John. Hi John. In the meantime anyone in the process of purchasing a property will be interested to note that we endorsed the recent Freehold Management Enquires conveyancing form FME1 form.
Many conveyancers might not yet know about these standard enquiries. Hello Anna, it seems like that would be a sensible assumption however you could speak to the current freeholder to establish the facts before moving forward. It sounds like the leasehold would have merged with the freehold in but do speak to your conveyancer to confirm this. My 99 year lease on a land which I built remains 16years of my original lease hold. Unfortunately, unknowingly ground rent has not been paid for almost 30years.
I now have two options. Should I pay up the unpaid lease hold in which it will be renewed for another 99years Or sell off and share the proceed with the leaseholder. What should be the sharing Ratio? Hi Akin, Check out our leasehold guides. I own a freehold property — a house — that is within an estate of relatively new properties, containing a mix of freehold and leasehold, houses and flats.
What are my rights? Firstly, have a look at any correspondence you have about the managing agent to see if it gives an indication that the managing agent is a member of an association. Hi, I have a flat in a freehold company comprising 3 flats in Westminster. One of the freeholders flat owner has been building in her 65 m2 flat for the past two and a half years, disturbing everybody else. She also refuses to sign the Deed of Variation.
What can we do? Hi, have a read of our guide on how to deal with noisy neighbours. Is this correct? Hi Gina Who did you speak to about the mortgage? Was it a broker? Get in touch with us and we can look into it for you. I j ust found out that a property I own comes under same title freehold as four others what does mean. Hi Jim This sounds unusual. Perhaps you have a leasehold interest in your property as do the four others and the leases are created out of this larger freehold title.
You could check the position at the Land Registry — all property ownership information is available for a small fee and it should be able to shed light on the situation. If you are still confused, become a member of HomeOwners Alliance and speak to our legal helpline who should be able to clarify things for you.
I am confused as I know on the govt website you can do personal flood plan for free. Hi, I am buying a leasehold flat and the current owners have taken back right to manage which starts on 13th September This is still on the sellers statement and they will not answer emails and calls to remove it. If they never remove it, does it become null and void after 13th September?
Also, the owner of the building wants the works to be completed still. Will they let us build up a pot of money first then get the jobs done when we have the resources or can they demand payment upfront? But reading through the contracts we are to sign it states we only own the freehold interest as there is the missing leasehold interest document.
Could you advise me on what the difference is between freehold and freehold interest. Thanks, Angela. Hi, I own part of the freehold of a multi occupancy building and I am also a leaseholder for our house. We developed the loft space in At this point all the residents in the 6 houses of this joined up building thought we owned our own loft spaces.
There are 6 attached houses and 3 flats. We have now been told the freehold company which I am part of could ask for payment for the developed loft space.
Even though no one else can gain access through to our loft we are being told the company own the loft spaces not the individual houses. Could you help me understand my legal rights with this. Kind Regards. Caterina Speight. Whether you have any ownership of the loft should be specified in your legal documentation. Did you have any discussion or negotiations with your freeholder at the time of planning and developing the loft?
If so, try to find some written evidence of this as it could be helpful to your case. If you were to join us you would be entitled to a free legal call to discuss your rights. Hi I own the freehold on the whole property that consists of two converted flats, which I own one of.
Recently I have had to make a claim on this insurance regarding the water from the flat above that came through my ceiling. I own the freehold for the whole house and live in the first floor converted maisonette. The leaseholder lives in the ground floor flat below. We now wish to sell but I have been informed that we may need to buy a lease even though we are freeholders for the whole house we share the buildings insurance for over 10 years.
Why is this? It would be good to know more details about your situation and who has advised you of this? We would be happy to discuss further so please do consider becoming a member. Hi, I have recently completed a contract exchange on a leasehold flat on the fourth top floor of the building. On the day we completed and I picked up the keys, I was able to check the mailbox only to find a notice that the developer freeholder submitted plans to build a 5th floor extension.
They have not brought up this during negotiations and the other tenants that have also recently moved in has felt that our property value will now drop.
I was wondering who I would consult regarding this first issue. In my property itself, the developer has not been around to perform a snagging review and we have found faults with the property such as a wall being built slanted causing the window to scratch the wall everytime we open it. I would just like to know who I can talk to as I feel that with the issue of the building extension and the developers freeholder failure to disclose this information during negiotations, I was unable to make an informed decision and was deceived into completing this contract.
I have confirmed that my solicitor and the selling agent were both unaware of this as well. Can I claim violation of my right to quiet enjoyment of my flat? And secondly with the state the property is in, especially with the lift being out of order while tenants were moving in is a complete disgrace and must be in breech of duties to maintain the property as a freeholder. Your advice would be much appreciated.
Have a freehold house on an estate managed development. Am I arrears and management company want to go to my mortgage company and get them to pay the arrears. The arrears have been caused by extra charges, finance charges, balancing fees, debt collectors fees. Four different management companies have been involved over the last 14 years. First two years no invoices were sent out. I am 68 on my own and living on a state pension.
The letters I have received have made me really ill. Have offered them increased monthly payments with my daughter helping me. But it has been refused. The company are Hurford Salvi Carr in Hertford. I hope you can kindly advise me. I own the freehold for the whole building and live in the first floor Flat and the leaseholder lives in the ground floor flat below.
We have had a fraught relationship from day 1 unfortunately. I own the freehold on the top floor flat in a converted old property of two flats. The owners downstairs wish to remortgage their property, and have asked me to establish whether there will be any fee to do this.
I have contacted my solicitors who have stated that it is largely at my discretion, and the amount I could expect to receive would be minimal; they have also stated that this could involve a lot of paperwork!
Thanks for your query. If you have a good relationship with the downstairs owner and have no problem with them remortgaging, then you could waive any entitlement to your fee and confirm that you have been notified of the remortgage if you are required under the lease to be notified of remortgages.
We own one of a three flat leasehold. We are considering attempting to buy the freehold or extending our leases to 99 years or beyond. We have about 55 years left on the leasehold. Generally speaking, is the price of extending the lease more or less than buying the freehold. How could your organisation help us with the decision and then assist us with the process? You can get an idea of the premium purchase price for extending the lease by using our lease extension calculator tool here.
For information on the process of extending your lease, take a look at our step by step guide to extending your lease. We can help and support you through the process but you will also need professional assistance. We can help you find suitable solicitors and surveyors. I and other flat owners bought the freehold of the property a house divided to flats some yeas ago.
Recent changes: Some of the flats have been bought under buy-to-let. Question 1. Who is the landlord for a buy-to-let flat that is being rented out? Question 2. I had to have a hip operation. The IRS does not allow leasehold improvements to be deducted. However, since improvements are part of the building, they are subject to depreciation.
Leasehold improvement depreciation should follow a year schedule that has to be re-evaluated each year based on its useful economic life. A tenancy for years, in which the contract is specified, including a clear beginning and ending date. A leasehold is an asset being leased, such as a building or unit in a building. A renter makes a contract with the owner or landlord to use the property in question, in exchange for a series of payments over the duration of the lease.
A commercial leasehold involves renting space for the purpose of operating a store, doctor's office or other business, and a residential leasehold is for a property to be occupied for personal use.
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Understanding Leaseholds. Types of Leaseholds. Leasehold Improvements. Store cards, credit cards, overdrafts, payday loans and illegal lending. Having a baby, returning to work, childcare costs. Sorting out money and homes, what if you have children, money after break ups. Managing costs, extra financial support, help with work or study. Paying and getting funding, ways to pay, problems with care. Difficult conversations, talking to teenagers, older people and partners.
Mortgages, help buying, remortgaging, first-time buyers, help and support. Renting a home to live in, renting out a home, and overcoming problems. What to do about mis-selling, compensation and complaints. Introduction, how it works, all about contributions. How much do you need, ways to build your pot, transferring and merging. Complaints, financial help when retired, changes to schemes. Starting a pension, types of pension, understanding pensions.
How it works, what you might get, National Insurance. Ways to draw your pension, when can you retire, Pension Wise appointments. Tax allowances, tax paid on pensions, tax relief. All guidance, including how to use the Pension Wise service. Getting started, getting the most out of savings, problems. How to invest, types of investing, buying and managing. Help with meeting goals, tax-friendly saving, saving for children. Wondering what the difference is between a leasehold and a freehold?
If your property is leasehold, you can buy the freehold from the freeholder along with other leaseholders — for example, other people living in a block of flats. It also means you can extend your lease fairly easily for up to years.
To buy the freehold, you and the other leaseholders will have to serve a Section 13 Notice on the freeholder. It might be expensive to buy the freehold. You and the other leaseholders will also need to set up a company to manage the building, or find a managing agent to do it for you.
Commonhold is an alternative to long-term leasehold. Owners of the properties that share a lease can form a commonhold association, which owns the land, building and common areas and is responsible for the management, maintenance, repair and servicing of them.
Like a leasehold, owners are responsible for their individual flats or houses. But, unlike leaseholds, there is no time limit for how long you can own the property. Anyone who owns a freehold in the building or estate is entitled to participate in the running of the commonhold association.
With a leasehold, you own the property subject to the terms of the leasehold for the length of your lease agreement with the freeholder. Some houses are sold as leaseholds. If this is the case, you own the property, but not the land it sits on.
When buying a leasehold property, it is important to consider the length of the remaining term of the lease. As time goes by the value of the property is affected by the diminishing term of the lease which could make the property more difficult to sell.
Typically it is a good idea that the lease has at least 80 years remaining or you might struggle to get a mortgage. This means the freeholder is, normally, responsible for the maintenance and repair of the building.
You might also be asked to pay into a sinking fund, to help cover any unexpected maintenance work needed in the future. The service charge on many properties will come with terms and conditions about how much they could rise by in the contract. If you own a leasehold property, the repairs and maintenance on your property are your responsibility. These usually apply to flats with common parts or to properties in residential areas which have communal gardens or grounds.
As a leaseholder you have rights preventing the landlord from taking advantage of you financially. The Right to Manage — this lets leaseholders take over some management tasks from the landlord without having to prove bad management. Apply to appoint a new manager — but you must prove bad management unfair costs, breach of agreements.
MoneyHelper is the new, easy way to get clear, free, impartial help for all your money and pension choices. Whatever your circumstances or plans, move forward with MoneyHelper.
Download app: WhatsApp. For help sorting out your debts or credit questions. For everything else please contact us via Webchat or telephone. Get an estimate on how much this might be with the lease extension calculator. If you own the leasehold to a flat, you will probably need to ask all the other leaseholders in the block to agree to request a lease extension for their properties as well.
In addition to the cost of the lease extension itself, you will need to pay legal fees for both you and the freeholder, plus stamp duty if necessary. With a flat, you will own only a share of the freehold but with a house you will own the entire freehold. The cost of a freehold depends on negotiations between you and the landlord. Remember, you will have to pay the legal fees on top.
While buying a leasehold property is not as straightforward as an ordinary house purchase, it may be something that you have to consider if you are buying a flat.
You just need to be aware that there are likely to be extra costs , and factor these into your calculations. Although you might be happy buying a property with a short lease, it could affect your chances of getting a good resale price when you move.
If you buy a property with a leasehold of 70 years and stay there for 25 years, the next owner will be buying a property with just 45 years left on the lease. That will make your property much more difficult to market. Finally, commonhold provides a relatively new alternative to long term leasehold as it allows owners to be responsible for their individual properties with no time limit on how long you own the property.
Commonhold property owners can also form a commonhold association, which owns the land, building and common areas, taking on the responsibility for the maintenance and servicing of these areas. The total cost of buying a home How much deposit do I need for a mortgage?
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