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Property - right to buy Freehold?

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Just wanting bit of advice on FH/ Leasehold rights

 

A FH split to create 2 Leasehold adjoining houses (terrace)

FH remains under original ownership and 1 Leasehold house sold on 100y+ lease. .

Freeholder resides in the other Leasehold house.

 

The property was originally resided in as one house by Freeholder

Annual GR charged on the sold leasehold house.

No Management and no service charges.

 

Is it correct that the Right of First Refusal for the new owner to buy FH after 2y occupancy isn't applicable if the Freeholder resides in the other part of the FH property?

 

They are not the same size properties.

The Freeholder lives in the smaller house.

Not sure if this makes any difference?

Anyone know if new owner has right to buy FH or not? Just for their part?

 

If new leaseholder doesn't have right are they eligible to ask for share of FH?

Thanks

Edited by dx100uk
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If they have separate entrances and ground footprint it would be worth considering selling the freehold of that part to the lessee but as you have written it the freeholder of the leashold property appears to live in the lease property. Does this mean that the f/h property has been sold on now creating an ownership problem?

Explain things more clearly including the history then you will get an answer

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The FH property was one house lived in as a whole; then divided into 2 units. One unit is for sale; the other unit will be lived in by the Freeholder. Just trying to analyse the rights of both: the resident Freeholder and the incoming purchaser of the Leasehold title of the other unit.

Both units have separate entrances. And both sit on their own footprint as the split was vertical; not horizontal.

The Freeholder prefers to retain the FH of both units for annual Ground Rent purposes (nominal £1000pa) and potential gain for descendant in the future when the Lease becomes shorter and needs to be extended.

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then the person buying a lease get just that, no other rights. As for the GR, that is excessive so not likely to get a purchaser unless lease is 999 years.

 

Sounds like someone is being greedy and unless central London, unrealistic to boot as the selling price will reflect the other disadvantages so flat will likely fetch £40k less then a freehold

 

The big property developers have created problems with leases because of their greed and it is likely that there will be a change in the law that will make this lease untenable so no lender will touch it unless the purchaser has a massive deposit and if that were the case they would buy somewhere else with less onerous conditions

Edited by honeybee13
Paras

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Thanks ericsbrother.

just double checked - GR is £500pa, doubling every 20y. Not quite as excessive as thought. No service or management charges.

ps Yes central London...

 

So just to clarify - the resident Freeholder doesnt have to sell the FH for the other unit - but could come to an arrangement with the new leaseholder for an agreed sum??

Guess a valuer would be able to advise on value to add FH onto a 100y+ lease. Perhaps bit more than 40k in London?

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why are you inventing scenarios that dont actually have any grounding in reality and then asking more questions based on a totally different situation. Give us some facts and you will get worthwhile advice.

 

So are you the leaseholder of the flat in question? How long is the lease? Do you intend to try and buy the freehold? If not what is this about?

Edited by Andyorch
Paras

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ouch ericsbrother It is a real situation

The question was regarding one freehold building split into 2 lease units - if an in-coming purchaser of a long lease unit has the right to buy the FH of their unit, if the freeholder lives in the other unit. It seems from your kind answer above that the incoming leaseholder doesn't have the right to demand the FH. Thank you

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You still havent said anything about which party you are or what is your interest it in this. but it seems to be that you have to keep referring back to someone else You havent said how long the lease is or answered any of the other pertinent questions. It is not split into 2 lease units, they are not units for starters.

 

It is a freehold property owned by a person who happens to have leased out part of that. No lessee has the right to purchase the freehold but IF there are separate entrances and a separate footprint then it would be wise for them to enquire whether the freeholder would be willing to sell the freehold for that property. If it has its own footprint then the leaseholder may have the right to purchase the freehold.

 

The fact that the freeholder lives in part of what was once one dwelling is irrelevant other than to say that part isnt subject to a lease unless they are particularly stupid in drawing up the lease on the part that is subject to the lease (or they had intended to sell both flats at the time the lease was created)

 

Imagine you on a taxi, you dont get charged on the mileage you do to get to work and if you took your kids to the seaside in your cab your next door neighbour cant force them to pay you to do so.

Edited by honeybee13
Paras

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