Leasehold vs. Freehold

[BigChin1]

Looking for any advice or experience. Summary details:

• Purchased our house in 2007
• House constructed in 2001 by Persimmon Homes
• The bulk of our plot is leasehold, with a portion of the front garden freehold
• Term of lease is 999 years from May 1844
• No ground rent has ever been demanded

Is it worth pursuing the purchase of the freehold? If so, how? Could it open up a can of worms ("you've never paid any ground rent - here's your invoice..")?

 

[throwaway4372]

It'll all come up if you move anyway so nothing to lose.

 

[R.C.Anderson]

With everything I keep hearing about leasholds being sold to investment companies, I'd say it's worth looking into obtaining the freehold. As already said, when the house is next sold, the leasehold will come up anyway, so if they're going to recover unpaid rent, they'll do it then (and slow down your move until it's done).

 

[Vestas]

• House constructed in 2001 by Persimmon Homes
• The bulk of our plot is leasehold, with a portion of the front garden freehold
• Term of lease is 999 years from May 1844

This suggests that part of your land (where the house stands?) is on a lease which pre-dates the house by 150+ years and the other part (garden) is a "freehold"?

Even by Persimmon's "standards" this is odd to say the least. Presumably your solicitor gave you some paperwork on this way back in 2007?

 

[BigChin1]

This suggests that part of your land (where the house stands?) is on a lease which pre-dates the house by 150+ years and the other part (garden) is a "freehold"?

Even by Persimmon's "standards" this is odd to say the least. Presumably your solicitor gave you some paperwork on this way back in 2007?

Correct, two titles with Land Registry. For context the estate was built on the site of two former textile mills. The land occupied by mill 1 was built on in entirety by Persimmon, and all houses (approx 100) on this land were sold freehold, along with the part of my front garden that falls on that land. The land occupied by mill 2 was subdivided with around 25% built on by Persimmon, where my house is along with 7 others all sold as leasehold.

When we bought the house the issue of the leasehold caused a delay with the mortgage application, with the mortgage company wanting to know details of the ground rent, but the previous owners had never paid any. Eventually after some back and forth with our solicitor it was accepted and proceeded, though I don't recall any specifics.

 

[monkentage]

edit: misread op

 

[sigma]

Sounds expensive!

 

[Hagar]

Leases of that vintage can tend to be peppercorn rents ie virtually nothing. I collected ground rents in Leigh in the 1970's for terraced houses and they were pennies usually.