I own a semi-detached house worth about £250,000 on a 999-year lease. I’ve been offered the chance to purchase the freehold for £700 plus £500 admin fees. This seems excessive in view of the annual ground rent of £5.00. What do you think?
You should check your lease to see firstly if it contains any inconvenient restrictions on what you can and cannot do with your property, such as building extensions, fastening anything (satellite dishes?) to the exterior. And then, secondly, check if you’ve contravened any! If you’re in breach of any of the terms of your lease your landlord could impose hefty retrospective charges, in which case buying your freehold could be a cheap solution. You should also ask local estate agents whether buying your freehold will add to the value of your property.