Leasehold

physioman · 28-09-2015 1:43pm #1

Looking at buying a property and it states it is a leasehold. Has 400 years to run. House is detached in country side. Should I be concerned? Can I build extension onto the house and do with the site as I please? Finding it difficult to get info on this.

godtabh · 28-09-2015 1:45pm

physioman wrote: »

Looking at buying a property and it states it is a leasehold. Has 400 years to run. House is detached in country side. Should I be concerned? Can I build extension onto the house and do with the site as I please? Finding it difficult to get info on this.

Ask your solicitor.

physioman · 28-09-2015 1:47pm

godtabh wrote: »

Ask your solicitor.

Was gonna do that but wanted peoples experiences here first.

Claw Hammer · 28-09-2015 2:11pm

physioman wrote: »

Was gonna do that but wanted peoples experiences here first.

Leases are going to be different. There may be any number of covenants which vary from one to another. Your question is like saying I am going to have a meal in a restaurant, will I get food poisoning, can I bring my own wine?
Some lenders may insist that an opinion is obtained from a barrister to the efect that the freehold can be bought before they will lend the money. This will add c. €750 to the cost of the conveyance.

physioman · 28-09-2015 2:17pm

Claw Hammer wrote: »

Leases are going to be different. There may be any number of covenants which vary from one to another. Your question is like saying I am going to have a meal in a restaurant, will I get food poisoning, can I bring my own wine?
Some lenders may insist that an opinion is obtained from a barrister to the efect that the freehold can be bought before they will lend the money. This will add c. €750 to the cost of the conveyance.

Ok. Would the terms be contained in the folio for the property online?

MarkAnthony · 28-09-2015 3:58pm

Generally anything from 70-100 years is considered good marketable title and therefore the underwriters won't care. Ask you solicitor though and it will depend on your mortgage provider.

Desmonddoyle · 28-09-2015 4:01pm

It's actually not uncommon. A lot of older properties would be long leasehold rather than freehold - the money was supposed to go towards the upkeep of the estate and surrounding areas.

You can usually buy the leasehold easily enough for a multiple (7 years maybe, not sure) of the ground rent, which should be a nominal amount as it would have been set way back when.

Anyway, that would be your way to proceed - all back rents would have had to be cleared before you bought the house, so there shouldn't be huge arrears. If you haven't got any invoices or don't know who you are paying your ground rent to - your solicitor should know.

Technically you can't do any extensions without the freeholders permission. Your plan should be to find out who that is, and buy out the freehold.

physioman · 29-09-2015 12:58pm

Desmonddoyle wrote: »

It's actually not uncommon. A lot of older properties would be long leasehold rather than freehold - the money was supposed to go towards the upkeep of the estate and surrounding areas.

You can usually buy the leasehold easily enough for a multiple (7 years maybe, not sure) of the ground rent, which should be a nominal amount as it would have been set way back when.

Anyway, that would be your way to proceed - all back rents would have had to be cleared before you bought the house, so there shouldn't be huge arrears. If you haven't got any invoices or don't know who you are paying your ground rent to - your solicitor should know.

Technically you can't do any extensions without the freeholders permission. Your plan should be to find out who that is, and buy out the freehold.

Thanks for thorough reply. Appreciate it

Benny122 · 08-03-2016 8:56pm

Hi guys I'm thinking of but an apartment at the moment.

It's a two bed apartment as part of a 10 complex of apartments.

I have asked the estate agent and they informed me that the apartment is leasehold and the grounds are freehold - what does this mean?

athtrasna · 08-03-2016 8:58pm

Benny122 wrote: »

Hi guys I'm thinking of but an apartment at the moment.

It's a two bed apartment as part of a 10 complex of apartments.

I have asked the estate agent and they informed me that the apartment is leasehold and the grounds are freehold - what does this mean?

It's next to impossible to own an apartment, your floor is someone else's ceiling etc so leasehold is standard, often 999 years

Benny122 · 08-03-2016 9:05pm

athtrasna wrote: »

It's next to impossible to own an apartment, your floor is someone else's ceiling etc so leasehold is standard, often 999 years

So is it a waste of money to get a mortgage on an apartment plus there is maintenance fees on it

athtrasna · 08-03-2016 9:07pm

Benny122 wrote: »

So is it a waste of money to get a mortgage on an apartment plus there is maintenance fees on it

I have 987 years left on my apartment lease and that's fine by me

Management fees cover some stuff you'd need anyway like buildings insurance and in some cases bins as well.

Benny122 · 08-03-2016 9:16pm

athtrasna wrote: »

I have 987 years left on my apartment lease and that's fine by me Management fees cover some stuff you'd need anyway like buildings insurance and in some cases bins as well.

So the lease hold will never effect you then!! ??

Benny122 · 08-03-2016 9:19pm

athtrasna wrote: »

I have 987 years left on my apartment lease and that's fine by me Management fees cover some stuff you'd need anyway like buildings insurance and in some cases bins as well.

My management fees will be €1000 a year on top of my small mortgage of only €260 per month with my partner. I just don't want to be walking into this with my eyes closed.

Would house be better

athtrasna · 08-03-2016 9:38pm

Given the choice I'd choose a house over an apartment any time.

Benny122 · 08-03-2016 9:40pm

athtrasna wrote: »

Given the choice I'd choose a house over an apartment any time.

Are you sorry you bought an apartment then

athtrasna · 08-03-2016 9:44pm

Benny122 wrote: »

Are you sorry you bought an apartment then

It has its pluses. Great location. Some great neighbours, large rooms. And I feel more secure having lots of neighbours.

On the downside high density living takes a bit of getting used to. We have some renters in the block and they don't care about looking after the place as much as owners do. No option to have satellite TV either.

Benny122 · 08-03-2016 9:47pm

athtrasna wrote: »

It has its pluses. Great location. Some great neighbours, large rooms. And I feel more secure having lots of neighbours.

On the downside high density living takes a bit of getting used to. We have some renters in the block and they don't care about looking after the place as much as owners do. No option to have satellite TV either.

Ok well the apartment I'm thinking of buying is only
Part of 10 apartment complex so
It's really small.

The mortgage is only €170 each a month including maintenance!

Leasehold

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