Is it an advantage to have a freehold property
We are thinking of buying the freehold of our property. Does the price of a house rise in value if we purchased it?
Asked on Aug 29 2009,
House Prices in Wigan |
Are you on a share of freehold? The benefits by far out weigh living in a leased accommodation or share of freehold. With freehold, the only charges are council charges, you have to maintain the property yourself, which although can be expensive should there be a problem not covered by Insurance, you can take your time to resolve it and work with the finances you have. Plus, the land is YOURS if you have a freehold, as long as something you wish to build has Council approval it will count as a extra room, garage, loft conversion etc, therefore you are able to manually help your property grow in value by the tweaking of things on the outside and inside. The price of a house may well rise if it was previously a share of freehold as the agents will mention this to buyers when you sell, so its a plus point that they are buying an ex share of freehold, that is now a freehold without having to fork out themselves. This will also assist in getting you closer to the asking price, if not the full asking price. Also, factors to consider are how much it will cost and and if you offset that against the growth of the equity in property, it may actually not be worth doing it all. If the cost is £15k, and the maximum you will get for selling the house by doing this in a healthy market after subtracting this cost is a few thousand, I wouldn't bother with it. Share of freehold is relatively new but from what I see, goes down well with 1st time buyers and movers alike. Worth spending time on this point. No point of the solicitors charges, headache etc just for a few thousand that will only eat into any equity you may have.
I hope this helps.
Answered on Sep 3 2009,
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