Implications of buying Leasehold.

Heart Break Kid

Hi all,

Coming up to signing contracts and its been highlighted that the property(old council house) is in fact a leasehold. I understand the basics, I own the building, not the land. 110 years left on the lease. Pay a nominal annual rent. How does this effect potential extensions or adjustments to the house. How much would it cost to go freehold? Does it cost much to extend the years left? I understand ill be long gone but its just the idea of owning everything.

4ensic15

Heart Break Kid wrote: »

Hi all,

Coming up to signing contracts and its been highlighted that the property(old council house) is in fact a leasehold. I understand the basics, I own the building, not the land. 110 years left on the lease. Pay a nominal annual rent. How does this effect potential extensions or adjustments to the house. How much would it cost to go freehold? Does it cost much to extend the years left? I understand ill be long gone but its just the idea of owning everything.

It will cost several hundred euro to acquire the leasehold and perfect the title.

Heart Break Kid

Does anyone have any experience in actually do this. Was reading and got a rough calculation of €30,000. Would this be accurate?

Cloudio9

Heart Break Kid wrote: »

Hi all,

Pay a nominal annual rent. How does this effect potential extensions or adjustments to the house. How much would it cost to go freehold? Does it cost much to extend the years left? I understand ill be long gone but its just the idea of owning everything.

Is someone actually collecting ground rent ? In most cases it's not collected.

It doesn't affect anything and there's no point buying it out at this time.

Heart Break Kid

Cloudio9 wrote: »

Is someone actually collecting ground rent ? In most cases it's not collected.

It doesn't affect anything and there's no point buying it out at this time.

Well its DCC, so i doubt it, its more so if it created an issue extending the property. Of course Imasking my solictor but just looking for people with experience of it

theboringfox

They have no choice but to agree to sell you freehold. It's nowhere near 30k. I think it's something like 8 times the annual rent is deemed acceptable. Easiest thing is to engage DCC on it. Good bit of info here:

http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/ground_rent.html

Carlos Orange

Heart Break Kid wrote: »

Does anyone have any experience in actually do this. Was reading and got a rough calculation of €30,000. Would this be accurate?

I bought my house last year and didn't buy out the lease. Iirc it would have cost a little over a 1000 euro and was a multiple of the rent so it would depend on that. Probably will at some point but other things to spend money on atm. I got a copy of the lease. I'm not allowed to run a brothel or a hospital in my house but I wasn't planning to so that is fair enough.

4ensic15

theboringfox wrote: »

They have no choice but to agree to sell you freehold. It's nowhere near 30k. I think it's something like 8 times the annual rent is deemed acceptable. Easiest thing is to engage DCC on it. Good bit of info here:

http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/ground_rent.html

The multiple of the ground rent is only a small part of the cost. The new title has to be registered in the Land Registry. That will entail Land Registry charges and possibly legal fees. A budget of 1K is would not be unreasonable. My parents went through this about 10 years ago.

gmisk

I bought freehold of my house (was about 90 years left in leasehold) I think all in it was about 180 euro....did it directly with land registry no solicitor or legal fees needed

4ensic15

gmisk wrote: »

I bought freehold of my house (was about 90 years left in leasehold) I think all in it was about 180 euro....did it directly with land registry no solicitor or legal fees needed

Tha might be what you paid for the vesting certificate. It is no good unless you register the title. That can't be done for €180.

gmisk

4ensic15 wrote: »

Tha might be what you paid for the vesting certificate. It is no good unless you register the title. That can't be done for €180.

Maybe I am not explaining myself correctly. Property was registered title wise when I purchased via solicitor.

I got leasehold to freehold sorted after being in house for about a year that was about 180 euro....or am I way off? Letter confirms purchase of fee simple. Freehold title is now registered. Documents included counterpart transfer order and copy folio