UK Landlord Forum / Life

Hi All,
   
Was hoping to get some advice on this.
   
A property I intend on buying has 63 years remaining on the lease. The freeholder is willing to extend the lease for 21k, though including legal cost, I expect this will set me back around 25k. We have already asked him whether he would be willing to sell the freehold but he declined. The flat is part of a converted house and has 2 smaller flats below it.
   
Based on the research I did, I just need one of the owners living below the flat I intend on buying to agree to buying the freehold and we should be able to force the freeholder to sell. I am not quite sure exactly what determines the price of buying the freehold but it sounds like it will cost around the same price as extending the lease by 90 years, which will cost me 21k. The freeholder does not do any repairs on the property and so does not collect a service charge, only £400 ground rent/annum. The way I see it, it would be in my interest to buy a share of the freehold, extend the lease myself and save the £400/annum. Owning a share of the freehold should also push the value of the property up.
   
I was just wondering whether my way of thinking made sense. I am sure it is easier said than done.
   
Any advice would be much appreciated.

You know, I would never buy Leasehold again. I've been there, I've done that... it's more trouble than it's worth. Freehold all the way. So my 'answer' to your question is more on the spin of - why focus on this specific property? There's lots of properties out there. Choose something else. Choose something Freehold and then your headache simply... evaporates into nothing.

That the Freeholder doesn't demand a Service Charge today does not mean that situation will exist forever... if it happens, you'll have no control over what it is. Likewise, if the Freeholder suddenly decides the roof needs repairing and no Sinking Fund has been built-up over the years... expect a hefty surprise bill. No, I like to control my properties as best I can and that means Freehold.

Thank you for the post.

My preference is certainly to own a freehold or at least a share. I would like to buy a property close to a Crossrail station in London and am limited to the number of properties available as everyone seems to have the same idea, in addition, I have a 250k budget which exlcudes many of the larger properties which tend to have a freehold.

Did see one which had a share of a freehold over the weekend so am leaning more towards that one now.