Leasehold Help

AndyCroft1982

AndyCroft1982

AndyCroft1982

Associate
Joined
1 Sep 2013
Posts
914
Location
Darwen
HI All

We bought our terraced house last year which was leasehold. It has 800 years left on it.

Recently the company that owns the leasehold has sent us our yearly bill which is about £1.75 a year, however, it was in the previous owners names despite paying the legal fees to get it transferred into our names at sake.

Anyways, i emailed them back saying they had the wrong names and needed to change it. I also enquired about buying the leasehold off them. They have just replied saying they own the HEAD lease but not the freehold. I could buy the HEAD lease off them for £348. I am a little confused as to the difference between HEAD Lease and FREEHOLD. The freehold is apparently owned by the council.

Could someone explain the difference and is it worth buying the HEAD lease ?
 
Almost certainly not and if it is a ground rent rather than rentcharge just keep paying & keep the receipts - surprised they are bothering to collect at £1.75
 
Thanks for the reply, i did think it was a little steep but at first i thought it was to buy the freehold. Can i buy the freehold if i do not own the head lease?
 
A head lease means the property was leased to one person/company and then sub-leased to yourself. You'll probably have to buy it too.

If you just buy the freehold you'll own the property but not the right to live there 100%, as it been leased out. You will have to buy the head lease too. At which point you'll own it all and can get rid of he whole messy leases.
 
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I wouldn't bother on a 800+ year lease with £1.75 rent. It's as near to ideal as you can get! Buying the freehold when there is a head lease is not really worth doing.
 
Unless the terms of your lease and the headlease are markedly different, like you're hugely restricted by it in some way, then there will be no benefit to buying out the headlease.
 
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