House buying legal mumbo jumbo

[Maljonic]

Does anyone know what this means: "No Onward Chain" and this: "for sale Leasehold with vacant possession by private treaty."?

 

[Whipped]

No Onward Chain means that the people selling the house have already bought one and probably moved out already. So if you get that house you won't be waiting on them to buy somewhere else and get out.

Not sure on the other one

 

[dysfunction]

No Onward Chain = They are not waiting to buy another place. They either have bought something already or will be renting or something.

Vacant Posession = the date by which the vendor agrees to give up possession of the property. This means that the property being offered will be vacant upon completion of the sale. The property is therefore offered free from any such encumbrances as a sitting tenant or service tenancy. ie people are still living there but have agreed to move out when you buy the place.

Private Treaty = a sale of property on terms determined by agreement of the seller and buyer. The price can be different to what you would get if it was valued on the open market. So you could get a good deal / ripped off...so keep in mind what other properties are worth in the area.

 

[Maljonic]

Thanks, that's pretty good then,the onward chain bit, I thought the two were connected.

 

[Alan]

When i got my house this year it had no chain, the house was empty when I viewed it and got moved in within 6 weeks, the guy who sold it had already moved into another house and was paying two mortgages so was after a quick sale = cheaper price

As for the other, again no clue really - but...

Freehold means you own the property and are responsible for its upkeep

Leasehold means you own a right to live there for the duration of the lease (by the freeholder) then the property falls back to the freeholder so always check how long is left on the lease. These are typically used for flats. I guess the vacant part means you can have the place empty with prior agreement with the freeholder ? just guessing here.

edit: or it could mean the place will be empty and ready to move in when you complete the contract.

 

[dysfunction]

You can always renew the lease of a leasehold...its costs you money but you always have the right to do this.

You also have the right to buy the freehold part but only if certain requirements are met...

edit: I think my post above seemed to sneak in before the ones after it somehow...strange...

 

[Tilda]

You can always renew the lease of a leasehold...its costs you money but you always have the right to do this.

You also have the right to buy the freehold part but only if certain requirements are met...

edit: I think my post above seemed to sneak in before the ones after it somehow...strange...

You don't always have a right of renewal. While many contracts will say that you have a right, or that the landlord must ask you first, theres no right that even if your landlord wants to kick you out, he has to let you renew if he wants to.

I dont know what your 2nd point means, but I cant really see it being 100% accurate. Why should I have a right to buy my house off my landlord when he can get a better price else where? I think freedom of contract would trump this.

 

[Maljonic]

This is what the estate agent just emailed me, in case anyone is interested:

“for sale Leasehold with vacant possession by private treaty” means that the tenure of the property is leasehold (you own the property but not the ground that the property stands on ie. This is leased from the freeholder and there is normally a ground rent and service charge to pay.) and is being sold by a private party.

 

[MYstIC G]

Are you buying a house or a flat?

 

[dysfunction]

You don't always have a right of renewal. While many contracts will say that you have a right, or that the landlord must ask you first, theres no right that even if your landlord wants to kick you out, he has to let you renew if he wants to..

You are wrong. You are always able to renew the leasehold lease...as per the The Leasehold Reform Housing and Urban Development Act 1993

I dont know what your 2nd point means, but I cant really see it being 100% accurate. Why should I have a right to buy my house off my landlord when he can get a better price else where? I think freedom of contract would trump this.

The price would be market value...The 1993 Leasehold Reform Act also allows for the purchase of the Freehold...

 

[Maljonic]

Are you buying a house or a flat?

It was a house, but it's gone now anyway. I think I wouldn't buy a house with those conditions though, I'd prefer to own the whole thing.

 

[dysfunction]

Depends where you are buying I suppose but Leasehold tends to be cheaper and therefore easier to get yourself on the property ladder...

My current flat is a leasehold and has served me well. It has increased in value quite a lot and would now enable me to buy something bigger and freehold.

Its worth thinking about...

 

[MYstIC G]

I would advise against buying a leasehold house. Flat, no problems. What I've seen of it on houses though, has never been very clever.