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Buying out a leasehold

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  • 06-03-2015 12:21am
    #1
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭


    Buying a local authority leasehold at the moment, a bit different to you but it's been a sodding nightmare; in fairness not only down to the leasehold.

    You can make it a condition the vendor converts but good luck with that.

    You will have to abide by the lease, which may have provisions you're not happy with.


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    #2
    Consuelano
    Registered Users Posts: 34 ✭Consuelano


    MarkAnthony wrote: »
    it's been a sodding nightmare; in fairness not only down to the leasehold.

    MarkAnthony, I'm in a similar position. I went sale agreed on a property a couple of weeks ago and my solicitor informed me that the house is leasehold to a local authority. What's more, it's only got 60 years left. The bank won't let me draw down the mortgage unless the leasehold is 75 or more years. So my solicitor has instructed the vendor's solicitor to go about purchasing the freehold from the local authority. As I've just gone sale agreed, I'm wondering how long is all of this going to take??! Quite anxious that it could turn into a "sodding nightmare" as you put it... How far into the process are you? Any info greatly appreciated.


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    #3
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    Consuelano wrote: »
    MarkAnthony, I'm in a similar position. I went sale agreed on a property a couple of weeks ago and my solicitor informed me that the house is leasehold to a local authority. What's more, it's only got 60 years left. The bank won't let me draw down the mortgage unless the leasehold is 75 or more years. So my solicitor has instructed the vendor's solicitor to go about purchasing the freehold from the local authority. As I've just gone sale agreed, I'm wondering how long is all of this going to take??! Quite anxious that it could turn into a "sodding nightmare" as you put it... How far into the process are you? Any info greatly appreciated.

    It's going to take quite a while. Disposal of land means that it's a reserved function. It has to be put on an agenda and approved at a council meeting. the disposal resolution then has to be drawn up before the legal work begins. Depending on dates of meetings etc your looking at at least a couple of months id say, possibly more.


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    #4
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    You're probably talking months, but be advised by your solicitor.

    I'm lucky enough to have good marketable title (in relation to the leasehold) but that means after the contracts are signed I have to mess about waiting for Dublin City council to give permission to sell. Absolutely ridiculous given it's a one page form and a small enough payment. Why people are going to market without this done is beyond me.


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    #5
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Kelly06 wrote: »
    It's going to take quite a while. Disposal of land means that it's a reserved function. It has to be put on an agenda and approved at a council meeting. the disposal resolution then has to be drawn up before the legal work begins. Depending on dates of meetings etc your looking at at least a couple of months id say, possibly more.

    Do you know if the same process will apply to the permission to sell?


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    #6
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    MarkAnthony wrote: »
    You're probably talking months, but be advised by your solicitor.

    I'm lucky enough to have good marketable title (in relation to the leasehold) but that means after the contracts are signed I have to mess about waiting for Dublin City council to give permission to sell. Absolutely ridiculous given it's a one page form and a small enough payment. Why people are going to market without this done is beyond me.

    Why does DCC have to consent? There's good info on ground rent here:

    http://www.prai.ie/category/services/grservices/


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    #7
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    MarkAnthony wrote: »
    Do you know if the same process will apply to the permission to sell?

    Hey why does the vendor need permission to sell in your case? Is it an ex local authority house?


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    #8
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Kelly06 wrote: »
    Hey why does the vendor need permission to sell in your case? Is it an ex local authority house?

    Next door was, the house I'm buying is a self build on the site that originally belonged to the house next door.


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    #9
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    MarkAnthony wrote: »
    Next door was, the house I'm buying is a self build on the site that originally belonged to the house next door.

    It will take a while, the housing department have to consent to the sale. There are conditions to be met by both the vendor and the purchaser if the conditions are not met the consent will not be granted. Check out section 90 of the housing act 1966.
    http://www.irishstatutebook.ie/1966/en/act/pub/0021/sec0090.html
    Shouldn't be a slow as a ground rent once the vendor and purchaser get their finger out and get the application in.


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    #10
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    MarkAnthony wrote: »
    You're probably talking months, but be advised by your solicitor.

    I'm lucky enough to have good marketable title (in relation to the leasehold) but that means after the contracts are signed I have to mess about waiting for Dublin City council to give permission to sell. Absolutely ridiculous given it's a one page form and a small enough payment. Why people are going to market without this done is beyond me.

    Mark Anthony just a point for you to note, you understand that buying out the ground rent and getting consent to sell are two different things?. After you get consent and become the owner of the property you will still have a leasehold if that's what you bought! You can buy out the ground rent at your leisure it's no biggie the council will guide you through the process. It's fairly cheap to do also.


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    #11
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Kelly06 wrote: »
    Mark Anthony just a point for you to note, you understand that buying out the ground rent and getting consent to sell are two different things?. After you get consent and become the owner of the property you will still have a leasehold if that's what you bought! You can buy out the ground rent at your leisure it's no biggie the council will guide you through the process. It's fairly cheap to do also.

    Yes absolutely but thanks for checking. I'm in a different situation to Consuelano in that I've 100+ years to run on the lease but I'll be converting it as soon as I move. I'm wondering if it will take just as long to do it pre-sale now though reading the legislation you linked.

    Anyway that aside because I'll be taking over the leasehold I have to get permission to buy and the vendor permission to sell. Complete mess! :(

    On ground rent - looked into it - one page form which is what annoys me, vendor should have done it especially as they built a house, you would have thought they would have done it then.


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    #12
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    MarkAnthony wrote: »
    Yes absolutely but thanks for checking. I'm in a different situation to Consuelano in that I've 100+ years to run on the lease but I'll be converting it as soon as I move. I'm wondering if it will take just as long to do it pre-sale now though reading the legislation you linked.

    Anyway that aside because I'll be taking over the leasehold I have to get permission to buy and the vendor permission to sell. Complete mess! :(

    On ground rent - looked into it - one page form which is what annoys me, vendor should have done it especially as they built a house, you would have thought they would have done it then.

    Its no big deal to do. The ground rent will be really low. The land registry fees will be 130. The council will guide you through the process, most people don't even use a solicitor to do it. It takes a long time because it's a reserved function. It's set Down in legislation that it has to be done that way.

    Consent to sell does not take as long !


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    #13
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    The added dimension I have is we're still waiting on the permission to subdivide being provided and the boundaries are wrong. Permission to subdivide should be forthcoming shortly, or should I say proof of permission when it was asked for and granted over ten years ago.

    We're hoping to proceed (at a reduced price) with a declaration and qualified certificate of title. Of course it will depend on whether the bank accept it, it's a minor issue in the boundary tbh but would cut off access around the property if it was put back to the land registry boundary.

    No biggie as we could still gain access through the house (It's and end of terrace that would effectively have the access of a terrace). I also don't think the neighbours are bothered, but you never know.


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    #14
    lougre
    Registered Users Posts: 8 ✭lougre


    Hi

    Wondering how/if this was resolved for you.
    We are buying a similar house ie built beside the original house on the same land which is leasehold.
    It seems planning permission is ok and it's marked on the land folio 1A but consent from the landlord holder wasn't obtained (or can't be found)
    It's a bank sale and banks solicitors are refusing to get retrospective permission or sign off. Our solicitor thinks our bank may now be refuse to draw down on the mortgage.

    Was this similar to you?


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