Ground Rent Donnycarney

kerrythedog

Hi,

We're looking at buying a house in Donnycarney. Well into the process we discovered that it was a leasehold rather than a freehold. In theory we're still OK with this but the more we look into acquiring the freehold, the more concerned we are becoming.

The estate agents continuously reiterate that it is a good marketable lease (100+ years) and that as leaseholders we would have a right to acquire the freehold. However, we can't seem to fathom who currently owns the freehold. It's New Ireland Assurance on the folio. From talking to the prai they reckon it's some company called Ground Rent Assurance and somewhere else said Birdfield Securities. From internet searches, experiences with such companies doesn't appear very pleasant.

From what I now understand we are not entitled to make any alterations to the structure without prior written consent of the owners of the freehold and we don't even know who this is not to mention how to contact them!

Can anyone shed any further light on this?

Thanks,
KtD

mortimer33

Email info@prai.ie and let them know the address - they should be able to give you the details on how you can buy ground rent..

kerrythedog

Has anyone had any experience of dealing with Ground Rent Assurances or Birdfield Securities in this regard?

The_Morrigan

I've split off the conversation on the leasehold purchase.

Folks, can you try stay on topic.

Thanks

Nekarsulm

OP, how much is the ground rent? regards, Nek.

kerrythedog

I think it about €15 p/a.

KtD

Nekarsulm

How many years exactly? A lot of those old leaseholds would have been 999 year leases.100 years is not long. If you live there forty years and leave it to your kids, it's going to be reducing in value significantly from then onwards. In Seventy years, it's going to be seriously devalued as it gets near time to return to the lease owner.

Uno my Uno.

kerrythedog wrote: »

Hi,

We're looking at buying a house in Donnycarney. Well into the process we discovered that it was a leasehold rather than a freehold. In theory we're still OK with this but the more we look into acquiring the freehold, the more concerned we are becoming.

The estate agents continuously reiterate that it is a good marketable lease (100+ years) and that as leaseholders we would have a right to acquire the freehold. However, we can't seem to fathom who currently owns the freehold. It's New Ireland Assurance on the folio. From talking to the prai they reckon it's some company called Ground Rent Assurance and somewhere else said Birdfield Securities. From internet searches, experiences with such companies doesn't appear very pleasant.

From what I now understand we are not entitled to make any alterations to the structure without prior written consent of the owners of the freehold and we don't even know who this is not to mention how to contact them!

Can anyone shed any further light on this?

Thanks,
KtD

You don't actually need to deal with the companies to buy out the ground rent, if an agreement with them is not possible you can acquire it through the Ground Rents section of the Property Registration Authority, you can call them they are usually pretty helpful.

A Lease with 100+ years to run on it is more than enough for good marketable title, the banks put it at 70 years so you should have no issue with securing a mortgage etc. Furthermore you have more then 30 years to acquire the freehold, in human terms that is a very long time.

You won't know the answer to your questions about alterations and who owns the freehold until you or your solicitor sees the lease. Usually this happens after you go sale agreed and before the contracts are signed so if there is a problem it is possible to pull out of the purchase. Often once approval is granted for one set of alterations or transfer of ownership it is not required for any further changes.

antoinolachtnai

The estate agent has not told you anything that is (in my view) incorrect. However, you are perfectly within your rights not to take his word (or mind) on this but to get legal advice. You will need to appoint a solicitor when it comes to buying a property anyway.

If I were buying this property, I would take the agent at his word, and have the solicitor probe these matters in the period between the sale being agreed and contracts being signed.

From what I now understand we are not entitled to make any alterations to the structure without prior written consent of the owners of the freehold and we don't even know who this is not to mention how to contact them!

This is in general terms incorrect in relation to a ground rent as far as I know, even when there are such express terms in the lease, though you will need your own legal advice.

If I were you, before closing the sale, I would ask your solicitor to find out:

1. How long is the remaining lease, exactly.

2. Do you have the legal right to buy out the freehold?

3. If so, what is the procedure and what are the costs? What happens if the freeholder cannot be identified, or cannot be found?

4. If you do not buy out the freehold, what are the implications, in terms of planning and other matters?

These are straightforward questions for a solicitor experienced in conveyancing. I have my own ideas on what the answers to these questions are likely to be, but you need to get your own advice.