seamus wrote: » This is probably to do with the issue of ground rents. A lot of older housing would have been built on public land, with the proviso that the owner (or indeed renter) pays a ground rent to the local authority for the land on which their property is sitting - effectively a leasehold agreement. This has long been abolished, but there is a lot of property still legally under public ownership. Since 1978, it's become a legal requirement that these properties cannot be sold unless the land on which it is built is acquired from the local authority by acquiring a "fee simple", on payment of the outstanding ground rent. This converts it from leasehold to freehold. From what I understand, this has a tiny fee, a couple of hundred euro in most cases. However, what it does is add red tape to the sale such that the sale cannot be completed until the application has been submitted to the local council and gone through their processes. Which could take months depending on the council. In this case it sounds like the bidder @ €153k is not interested in waiting for this red tape to be unravelled and will withdraw his offer if the fee simple hasn't been acquired.
hfallada wrote: » I have never heard of this. My parents have brought a few houses since the mid 1990s with ground rent outstanding. You dont have to buy the ground rent at all.
The Fee Simple/Ground Rent buy out application process relates to the fact that, before 1978, houses were permitted to be sold although the ground they were built upon still remained in the ownership of the Council. Since 1978 houses cannot be sold unless the ground they are built upon is sold with them.
Kelly06 wrote: » If there is a section 90 prohibition note on the folio it just means that's it's the first resale of a tenant purchase property. The consent of the relevant local authority must be given to the sale. There are conditions on both the vendor and purchaser. In simple terms the vendor must prove that they are purchasing another property or have taken care of their housing needs in some other way. They must not leave themselves in the position where they need to go back on the housing list for accommodation. In the case of a purchaser they must be "in need of housing" as in purchasing a house to live in. They must not be buying the house as an investment property. Once the consent is given by the LA they will join in the deed. The land registry will remove the burden on registration. The consent will not be required again. Hope this helps. S90 has nothing to do with ground rent you can still have a leasehold with a s90 burden
gmisk wrote: » Thanks so much for this that would make sense. The other bidder is interested in buying the house as a rental investment, were as u am a first time buyer looking to live in it.
