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Buying a house on leasehold

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  • 23-05-2017 9:58pm
    #1
    sasta le
    Banned (with Prison Access) Posts: 1,586 ✭✭✭


    What does this mean? As in ud never own it


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    #2
    Atlantic Dawn
    Registered Users Posts: 82,658 ✭✭✭✭Atlantic Dawn
    M


    Owning the leasehold interest in a property means that you own just the building and not the land it is on and that your ownership is for a fixed number of years. If you own a leasehold property, you must pay a ground rent to your ground landlord - the person who owns the ground it is built on. The amount of ground rent paid varies. Often the ground landlord is the local authority.


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    #3
    sasta le
    Banned (with Prison Access) Posts: 1,586 ✭✭✭sasta le


    So a major headache


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    #4
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Usually not. It becomes a problem when there is a short period on the lease. many leases are for hundreds of years and the ground rent is tiny, maybe €20 a year or less. It is often not even collected. The vast majority of apartments are leasehold.


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    #5
    sasta le
    Banned (with Prison Access) Posts: 1,586 ✭✭✭sasta le


    Ok have spotted a property for auction with a 50 year leasehold.Thinking of bidding


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    #6
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    50 is very short. It needs to be longer than 70 for bank finance and needs more than 50 to be compulsorily acquired under the Landlord & Tenant Acts.


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    #7
    sasta le
    Banned (with Prison Access) Posts: 1,586 ✭✭✭sasta le


    4ensic15 wrote: »
    50 is very short. It needs to be longer than 70 for bank finance and needs more than 50 to be compulsorily acquired under the Landlord & Tenant Acts.

    Thanks for this auction is thursday only researching now


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    #8
    James Bond Junior
    Registered Users Posts: 5,136 ✭✭✭James Bond Junior


    sasta le wrote: »
    Thanks for this auction is thursday only researching now

    Probably the reason it is for auction. Can be sorted however if your solicitor is good but it would want to be straight forward and a cash sale.


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    #9
    SEPT 23 1989
    Registered Users Posts: 43,028 ✭✭✭✭SEPT 23 1989


    999 years usually


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    #10
    sasta le
    Banned (with Prison Access) Posts: 1,586 ✭✭✭sasta le


    James Bond Junior wrote: »
    Probably the reason it is for auction. Can be sorted however if your solicitor is good but it would want to be straight forward and a cash sale.

    Yes it would be cash sale.Could you get full ownership easy


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    #11
    James Bond Junior
    Registered Users Posts: 5,136 ✭✭✭James Bond Junior


    sasta le wrote: »
    Yes it would be cash sale.Could you get full ownership easy

    I only know in my case when I bought my house there was a leasehold held by a now defunct company. My solicitor was happy to let the sale progress once she knew she could obtain a freehold. 2 years later and she is still waiting on the powers that be to release the freehold. She reckons it could take another 1-2 years but is not worried. Seems that whatever gov department deals with this kind of thing move VERY SLOWLY. I'm not really familiar with the process just it is fairly lengthy.


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    #12
    Not_A_Racist
    Registered Users Posts: 116 ✭✭Not_A_Racist


    In the UK there's some big stories about leasehold and ground rents. In some cases the ground rents were set to double every ten years. The problem came to light when banks refused mortgages.

    Doubling every ten years means a 32 times increase over 50 years, and over 1,000 times increase over 100 years.


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    #13
    sasta le
    Banned (with Prison Access) Posts: 1,586 ✭✭✭sasta le


    Havent got much time to play with.How much can my solictor find out in little time


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    #14
    Gmaximum
    Registered Users Posts: 378 ✭✭Gmaximum


    sasta le wrote: »
    Havent got much time to play with.How much can my solictor find out in little time

    Talk to your solicitor they'll be best placed to answer


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    #15
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    There needs to be 50 years left on the lease before thye freeholder can be forced to sell. There may also be restrictive covenants.


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    #16
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Op, I know this isn't directly related to your question but it may indirectly be. You need to be knowledgable about the process of bidding/buying at auction. If your bid is accepted, the contract is formed on the day, the property is yours warts and all. So if you are informed before bidding that it is a leasehold property, you cannot backout later if your solicitor finds out it cannot be transferred or that you may have problems selling the property in the future.


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    #17
    sasta le
    Banned (with Prison Access) Posts: 1,586 ✭✭✭sasta le


    davo10 wrote: »
    Op, I know this isn't directly related to your question but it may indirectly be. You need to be knowledgable about the process of bidding/buying at auction. If your bid is accepted, the contract is formed on the day, the property is yours warts and all. So if you are informed before bidding that it is a leasehold property, you cannot backout later if your solicitor finds out it cannot be transferred or that you may have problems selling the property in the future.

    Thanks for reply.In two minds noe


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    #18
    Not_A_Racist
    Registered Users Posts: 116 ✭✭Not_A_Racist


    To be honest OP, if you're inexpereinced with property or with auctions you'd be best advised to avoid.

    If the leasehold expires then the land, and all buildings on the land, revert to the freeholder, i.e. not you. If you buy you may have less than 50 years in the property.

    Auctions are buyer beware. In other words, if you buy something with no value, or with major legal problems, or with associated debts, that's your problem.

    Legal packs are often free to download and to look through. Rich experienced businesspeople will be looking for bargains here. If your house is a bargain it's likely others will have noticed too and the price will rise. If no-one else is bidding perhaps the house isn't worth it... in the sense the others have noticed something you haven't.

    A poster on the previous page stated that you can buy out your leasehold if there's in excess of 50 years remaining. If that's correct and your leasehold is less than 50 years you need legal advice. The advice will probably be to stay away, or to spend lots of money on further legal advices.



    This is very unlikely but in the US engineers have moved entire houses, by placing them on rollers and driving them somewhere new. Very difficult but perhaps possible. It'd certainly cost tens of thousands. Steel sheds could perhaps be disassembled.


    off topic<snipped>


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