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12-03-2019, 13:55   #1
bri007
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Leasehold house - should we still buy?

Hi all,

So we are sale agreed, contracts have been issued etc.

Solicitor sent me an email today outlining that the house we are buying is a leasehold property and there are 139 years left on it.

Forgive my ignorance, I know I won’t outlive that but just wondering about handing it down to family etc.

We are paying over €450k for it and wasn’t expecting it to be leasehold. I know nothing about this. Is this anything to get alarmed about?

Thanks in advance
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12-03-2019, 14:32   #2
Doop
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I would say yes it is something to be 'alarmed' about! you should really have been making an offer on the house already in the knowledge that it was leasehold. The fact that its leasehold will have a bearing on the value. Have you discussed with your solicitor about the possibility of acquiring the freehold? Is your solicitor local to the house?
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12-03-2019, 14:50   #3
antoinolachtnai
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You need the advice of your solicitor about the implications and the options.

It is very likely indeed that this is not anything to be alarmed about at all.

If the Bank are prepared to lend against the title it is probably not too bad (but you should ask still get your own advice).
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12-03-2019, 14:51   #4
Tigerandahalf
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You should get a new solicitor if they are only now telling you it is a leasehold.
There could be a management company in place if your unit is part of a larger building. Is there a shop under you or other units involved?
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12-03-2019, 14:56   #5
bri007
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It’s a semi D 3 bed house. Literally first we heard of it today by email.

Quote:
Originally Posted by Tigerandahalf View Post
You should get a new solicitor if they are only now telling you it is a leasehold.
There could be a management company in place if your unit is part of a larger building. Is there a shop under you or other units involved?
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12-03-2019, 15:03   #6
JimmyMW
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Originally Posted by bri007 View Post
It’s a semi D 3 bed house. Literally first we heard of it today by email.
To the best of my knowledge once there is less than 70 years left on the lease then the property becomes un-mortgageable, so it very well may be a concern for the next generation if handed down. As others posters have said it being a leasehold property will have a bearing on its price, it will be worth less than similar freehold properties in the area.

I would have your solicitor request that the current owner purchase the freehold (if possible) and provide the property freehold for the agreed price, or check out purchasing the freehold yourself and the costs involved or alternatively revise your offer to reflect the fact the property is leasehold.
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12-03-2019, 15:12   #7
Tigerandahalf
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It sounds like the house is part of a very old building. I would be looking into the deeds and see what the story is with the common areas. Maybe it is an ex council house and the council held the lease on a number of the houses.

Your solicitor is not helping you here. I would be digging for more info.
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12-03-2019, 15:16   #8
Markcheese
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You need to know who owns the leasehold..and how easy or expensive it'll be to buy out the lease...
(I had same issue when I bought my house, was a bit surprised to find it was lease hold, owned by the local authority, just as I completed the sale they got rid of all their leaseholds, only cost the solicitors fee..)
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12-03-2019, 15:40   #9
bri007
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Just after trying to contact solicitor there, not in office now. I’ve emailed him and asked about buying out the leasehold and how to go about it.

Should I try and get something off the agreed sale price or is that being cheeky?

From the email my solicitor sent me, he didn’t appear to make a big deal out of it
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12-03-2019, 15:47   #10
ronoc
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Leasehold isn't a big issue in Ireland. It is very common in parts of Dublin. Ground rents have typically been reduced to a pittance by inflation and legislation has made them easy and relatively affordable to buy out as long as there is time left to run on the lease.

Don't let it put you off if your solicitor is happy with it.
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12-03-2019, 15:52   #11
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There is a scheme that gives you the right to purchase the leasehold at a fair price, your solicitor should know about it.

https://www.citizensinformation.ie/e...ound_rent.html

https://www.prai.ie/guidelines-for-g...rchase-scheme/

This is the best only link I could find on the price,
it means that the leaseholder can't hold you to ransom for a ridiculous figure

https://www.irishtimes.com/business/...ules-1.1294537

If more than 15 years remain on the lease, or the tenancy is yearly, the cost of buying out the ground rent cannot exceed an amount which, if invested in the most recent long-term Government Stock, would produce an annual gross interest equal to the amount of the rent under the lease or tenancy.

...

However, if the lease has run its full term, the cost is based on the value of the property - typically one-eighth of the value of the house.
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12-03-2019, 16:00   #12
Sleeper12
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Ronoc is 100 percent correct. It's absolutely nothing to worry about. My first house was leasehold. It was something ridiculous like 5 pounds per year.

Ask your solicitor to explain it to you. For the life of me I can't remember or be certain of the exact details but I believe that the ground rent is only owed if they actually look for it. Any back ground rent will be paid before the sale. You have a legal right to buy out the lease & I think the cost is 7 years rent or something like that. The danger of a lease is letting the lease run out before buying it out.

Definitely nothing to put you off the house and nothing that would effect the value of the property
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12-03-2019, 16:02   #13
Rew
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Its normally bought out and converted to freehold as part of a sale, thats what we did
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12-03-2019, 16:07   #14
gmisk
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My house was leasehold I think 80 years left, I bought freehold after buying house no big deal via prai, you can do via a solicitor or by yourself.
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12-03-2019, 16:22   #15
Nobodysrobots
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My house was leasehold I think 80 years left, I bought freehold after buying house no big deal via prai, you can do via a solicitor or by yourself.

How much does it cost though?
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