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Leasehold

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  • 28-09-2015 2:43pm
    #1
    physioman
    Registered Users Posts: 1,239 ✭✭✭


    Looking at buying a property and it states it is a leasehold. Has 400 years to run. House is detached in country side. Should I be concerned? Can I build extension onto the house and do with the site as I please? Finding it difficult to get info on this.


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    #2
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,218 Mod ✭✭✭✭godtabh


    physioman wrote: »
    Looking at buying a property and it states it is a leasehold. Has 400 years to run. House is detached in country side. Should I be concerned? Can I build extension onto the house and do with the site as I please? Finding it difficult to get info on this.

    Ask your solicitor.


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    #3
    physioman
    Registered Users Posts: 1,239 ✭✭✭physioman


    godtabh wrote: »
    Ask your solicitor.

    Was gonna do that but wanted peoples experiences here first.


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    #4
    Claw Hammer
    Registered Users Posts: 6,241 ✭✭✭Claw Hammer


    physioman wrote: »
    Was gonna do that but wanted peoples experiences here first.
    Leases are going to be different. There may be any number of covenants which vary from one to another. Your question is like saying I am going to have a meal in a restaurant, will I get food poisoning, can I bring my own wine?
    Some lenders may insist that an opinion is obtained from a barrister to the efect that the freehold can be bought before they will lend the money. This will add c. €750 to the cost of the conveyance.


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    #5
    physioman
    Registered Users Posts: 1,239 ✭✭✭physioman


    Claw Hammer wrote: »
    Leases are going to be different. There may be any number of covenants which vary from one to another. Your question is like saying I am going to have a meal in a restaurant, will I get food poisoning, can I bring my own wine?
    Some lenders may insist that an opinion is obtained from a barrister to the efect that the freehold can be bought before they will lend the money. This will add c. €750 to the cost of the conveyance.

    Ok. Would the terms be contained in the folio for the property online?


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


    Generally anything from 70-100 years is considered good marketable title and therefore the underwriters won't care. Ask you solicitor though and it will depend on your mortgage provider.


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    #7
    Desmonddoyle
    Registered Users Posts: 75 ✭✭Desmonddoyle


    It's actually not uncommon. A lot of older properties would be long leasehold rather than freehold - the money was supposed to go towards the upkeep of the estate and surrounding areas.

    You can usually buy the leasehold easily enough for a multiple (7 years maybe, not sure) of the ground rent, which should be a nominal amount as it would have been set way back when.

    Anyway, that would be your way to proceed - all back rents would have had to be cleared before you bought the house, so there shouldn't be huge arrears. If you haven't got any invoices or don't know who you are paying your ground rent to - your solicitor should know.

    Technically you can't do any extensions without the freeholders permission. Your plan should be to find out who that is, and buy out the freehold.


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    #8
    physioman
    Registered Users Posts: 1,239 ✭✭✭physioman


    Desmonddoyle wrote: »
    It's actually not uncommon. A lot of older properties would be long leasehold rather than freehold - the money was supposed to go towards the upkeep of the estate and surrounding areas.

    You can usually buy the leasehold easily enough for a multiple (7 years maybe, not sure) of the ground rent, which should be a nominal amount as it would have been set way back when.

    Anyway, that would be your way to proceed - all back rents would have had to be cleared before you bought the house, so there shouldn't be huge arrears. If you haven't got any invoices or don't know who you are paying your ground rent to - your solicitor should know.

    Technically you can't do any extensions without the freeholders permission. Your plan should be to find out who that is, and buy out the freehold.

    Thanks for thorough reply. Appreciate it


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    #9
    Benny122
    Registered Users Posts: 133 ✭✭Benny122


    Hi guys I'm thinking of but an apartment at the moment.

    It's a two bed apartment as part of a 10 complex of apartments.

    I have asked the estate agent and they informed me that the apartment is leasehold and the grounds are freehold - what does this mean?


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    #10
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Benny122 wrote: »
    Hi guys I'm thinking of but an apartment at the moment.

    It's a two bed apartment as part of a 10 complex of apartments.

    I have asked the estate agent and they informed me that the apartment is leasehold and the grounds are freehold - what does this mean?

    It's next to impossible to own an apartment, your floor is someone else's ceiling etc so leasehold is standard, often 999 years


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    #11
    Benny122
    Registered Users Posts: 133 ✭✭Benny122


    athtrasna wrote: »
    It's next to impossible to own an apartment, your floor is someone else's ceiling etc so leasehold is standard, often 999 years

    So is it a waste of money to get a mortgage on an apartment plus there is maintenance fees on it


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    #12
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Benny122 wrote: »
    So is it a waste of money to get a mortgage on an apartment plus there is maintenance fees on it

    I have 987 years left on my apartment lease and that's fine by me ;) Management fees cover some stuff you'd need anyway like buildings insurance and in some cases bins as well.


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    #13
    Benny122
    Registered Users Posts: 133 ✭✭Benny122


    athtrasna wrote: »
    I have 987 years left on my apartment lease and that's fine by me ;) Management fees cover some stuff you'd need anyway like buildings insurance and in some cases bins as well.

    So the lease hold will never effect you then!! ??


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    #14
    Benny122
    Registered Users Posts: 133 ✭✭Benny122


    athtrasna wrote: »
    I have 987 years left on my apartment lease and that's fine by me ;) Management fees cover some stuff you'd need anyway like buildings insurance and in some cases bins as well.

    My management fees will be €1000 a year on top of my small mortgage of only €260 per month with my partner. I just don't want to be walking into this with my eyes closed.

    Would house be better


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    #15
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Given the choice I'd choose a house over an apartment any time.


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    #16
    Benny122
    Registered Users Posts: 133 ✭✭Benny122


    athtrasna wrote: »
    Given the choice I'd choose a house over an apartment any time.

    Are you sorry you bought an apartment then


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    #17
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Benny122 wrote: »
    Are you sorry you bought an apartment then

    It has its pluses. Great location. Some great neighbours, large rooms. And I feel more secure having lots of neighbours.

    On the downside high density living takes a bit of getting used to. We have some renters in the block and they don't care about looking after the place as much as owners do. No option to have satellite TV either.


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    #18
    Benny122
    Registered Users Posts: 133 ✭✭Benny122


    athtrasna wrote: »
    It has its pluses. Great location. Some great neighbours, large rooms. And I feel more secure having lots of neighbours.

    On the downside high density living takes a bit of getting used to. We have some renters in the block and they don't care about looking after the place as much as owners do. No option to have satellite TV either.

    Ok well the apartment I'm thinking of buying is only
    Part of 10 apartment complex so
    It's really small.

    The mortgage is only €170 each a month including maintenance!


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