Why are people buying leasehold homes??

MrBane

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#1
'I own a home but feel like I'm renting'

Why? I know people are desperate to get on the ladder, but where does this seem like a good idea - buying a property you don't and may very well never, actually own?

An I missing something here other than the demand for housing, the rush to buy and the lack of research people do when buying?
 

rampant

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#2
'I own a home but feel like I'm renting'

Why? I know people are desperate to get on the ladder, but where does this seem like a good idea - buying a property you don't and may very well never, actually own?

An I missing something here other than the demand for housing, the rush to buy and the lack of research people do when buying?
Leasehold is definately an English problem, we don't have it up here, but it's been a staple of English Property Law for Centuries, huge swathes of London fall into leasehold, plenty of Georgian, Victorian, homes and apartments all leasehold with leases from 99year and above. That it's so widespread means that iot is often impossible for you to live in an area and not find yourself purchasing one. Though the leases swill certainly extend beyond the buyers lifetime, and perhaps their kids, but certainly not their grandkids.

It's a throwback to a rentier economy
 
#3
There's been a massive increase in buying a % of a property around here. Normally 25 or 50% but I've seen 75 as well. Not sure if you can ever purchase the whole shebang but I'd bet not.
I don't get it.
 

ExREME..TECH

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#4
There's been a massive increase in buying a % of a property around here. Normally 25 or 50% but I've seen 75 as well. Not sure if you can ever purchase the whole shebang but I'd bet not.
I don't get it.
I own a percentage of my home




100 percent
 
#5
'I own a home but feel like I'm renting'

Why? I know people are desperate to get on the ladder, but where does this seem like a good idea - buying a property you don't and may very well never, actually own?

An I missing something here other than the demand for housing, the rush to buy and the lack of research people do when buying?
Buying leasehold property is great for the owners of the Head Lease.
There is some argument for freehold tenure for flats, but for houses it's a scam and I fully expect action will be taken by HMG.
 

Auld-Yin

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#6
Leasehold is definately an English problem, we don't have it up here, but it's been a staple of English Property Law for Centuries, huge swathes of London fall into leasehold, plenty of Georgian, Victorian, homes and apartments all leasehold with leases from 99year and above. That it's so widespread means that iot is often impossible for you to live in an area and not find yourself purchasing one. Though the leases swill certainly extend beyond the buyers lifetime, and perhaps their kids, but certainly not their grandkids.

It's a throwback to a rentier economy
Scotland used to have a similar system of Feu Holders. A few decades ago (well 2000 AD) these iniquitous feus were done away with, most of them were held by the Church of Scotland so getting rid was not that simple and took time.
 
#8
Leasehold makes sense in a flat or property of multiple title, as ultimately there has to be a way to provide for things like common maintenance and buildings insurance.

I've no idea why anyone would buy a leasehold new build house though, apart from gullibility or very bad solicitors.

I suppose one driver is that new developments often have private access roads that will not or cannot be adopted by the council/Highways authority, or perhaps common utilities supply, and that, again, there has to be a way to compel property owners to contribute to maintenence costs.

The "lease solution" for flats is for the owners to form a management company and take over the head lease themselves. However, the big fly in this ointment is that many people absolutely cannot be trusted to either contribute to the common good, or even be tolerable neighbours. Sometimes its much easier to have an absent 3rd party "evil landlord" who organises the roof repairs or the building painting, issues invoices to the owners - and takes responsibility for debt recovery.
 
#9
In quite a few cases the buyers used the heavily subsidised conveyancing offered by the developers who, surprise surprise, played down or outright didn't draw the buyers attention to the onerous ground rent clauses. In others the buyers were told by commission hungry salespeople that they could only purchase the freehold after a couple years in the property, and then find that it's actually been sold to some offshore shell company who want ridiculous amounts to sell it.
 
#10
Leasehold is definately an English problem, we don't have it up here, but it's been a staple of English Property Law for Centuries, huge swathes of London fall into leasehold, plenty of Georgian, Victorian, homes and apartments all leasehold with leases from 99year and above. That it's so widespread means that iot is often impossible for you to live in an area and not find yourself purchasing one. Though the leases swill certainly extend beyond the buyers lifetime, and perhaps their kids, but certainly not their grandkids.

It's a throwback to a rentier economy
I know in Liverpool it's been an issue with new build leaseholds, with the supply of homes at a premium I can see why some people take them despite the obvious disadvantages

But just as endowment mortgages have virtually disappeared after the misspelling scandals, it must be just a matter of time before leaseholds become under more scrutiny

Especially new build houses, I can't see any reason for them except to fleece desperate or unwitting consumers
 
#12
But just as endowment mortgages have virtually disappeared after the misspelling scandals,
The irony of a misspelling scandal...


sorry....

A workmate has been looking at buying a flat, one that she's put an offer in for is leasehold but there is no ground rent and hasn't been for some time.
In short - house owner dies, no will, no relatives, Government gets it all, auctions house off - gets turned into two flats. due to cockup at auction time there is no ground rent to pay despite being a leasehold, and yes, it is in proper official solicitor approved writing.
 
#14
An I missing something here other than the demand for housing, the rush to buy and the lack of research people do when buying?
Another revenue stream for the house builders, who not content with the money thrown at them by the most inept Chancellor (Gideon) of pre ww2 UK and his ill thought out policy of Help to Buy

Archie
 
#15
As soon as new developments put their plots up for grabs, the buy-to-letters/renters descend in droves and buy up all the cheaper houses. This leaves none available for the people on low incomes.

Older houses have also been targeted by buy-to-renters because they've learned that a small investment can reap silly rewards.

All in all, there aren't many cheap freehold properties on the market.
 
#16
Well my brother is putting a deposit on one and renting it out, why not?
Depends on the terms of the leasehold. I've heard of quite a few instances (as in the ops article) where the freehold gets flogged on often overseas and the ground rent and services charges get rapidly bigger year on year.
 
#17
Buying leasehold property is great for the owners of the Head Lease.
There is some argument for freehold tenure for flats, but for houses it's a scam and I fully expect action will be taken by HMG.
Flying and Creeping Freehold seems to work just fine up here, sometimes with co-operative rights to share factoring and sometimes deeds of access.
 
#18
Using crappy solicitors (or worse, looking directly at conveyancers) probably doesn't help the matter.

That, combined with people getting in a blind panic about getting on the property ladder via any means leads to a load of people accepting some pretty crazy conditions they wouldn't normally even consider. House buying does funny things to people, it seems.
 
#19
The irony of a misspelling scandal...


sorry....

A workmate has been looking at buying a flat, one that she's put an offer in for is leasehold but there is no ground rent and hasn't been for some time.
In short - house owner dies, no will, no relatives, Government gets it all, auctions house off - gets turned into two flats. due to cockup at auction time there is no ground rent to pay despite being a leasehold, and yes, it is in proper official solicitor approved writing.


Presumably, though, the Landlord will still invoice for building maintenance and insurance and - if he/she is hacked off about the lack of ground rent, then its not too hard to roll that up into work invoices.
 
#20
Leasehold, was a very common situation, but it used to just relate to the land and would just be a nominal fee. I can remember that my mother was responsible for collecting the leasehold money for 5 houses on our street, each one was only about £30.00 per year.

Property developers then realised that they could make a lot more money by either including the actual building in the leasehold or by trapping the residents on an estate: After building the estate and sold all the houses, the property developing company folds and sells on all its assets, which still consist of the land that runs round the outside of all all the houses. The "new" company buying the assets would then inform the tenants that they do not have right of access across the little strip of ground from their house to the road, but they could buy it for another £20,000.00 or so. IIRC it was a con run a number of times and the solicitors who did the conveyancing wouldn't pick up on it as the original vendors owned the whole estate.
 

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