Share of Freehold Leases

VictoriaS_3 · 28 November 2009 at 9:32AM

HI,

I'm in the process of buying a share of freehold flat and have just been infomred by my solicitor that there is only 66 years left on the lease.

The register of title documents shows that the current owners have 'absolute title' and that in 2005 they paid £4,000. Does this mean they bought their share of freehold in 2005? It seems strange that they would have bought a share of freehold at this time without extending the lease as there would have only been 70 years left on it at that point.

Any thoughts? Also, under the schedule of the notices of leases section, there are seems to be two leases for ground and upper floor flats. Does this mean we the own the freehold between us? How do I find out if anyone else is involved? And how easy is it to extend the lease if necessary (and how costly?) The two leases are a similar lengths- with just a couple of months difference.

I am awaiting a response from my solicitor re all this, but I am getting a little anxious in the meantime...

Any advice welcome,
Thanks,
Victoria

Richard_Webster · 28 November 2009 at 12:28PM

Although some mortgage lenders require 70 yaers as a minimum lease length a lot of the big ones require 30 yaers plus the length of the mortgage - typically only 55 years.

Share of freeholders often don't bother to lengthen leases because either:

1. there are some legal costs involved and they think it can wait until it has to be done; or

2. they think that because they have a "share of freehold" there aren't any leases that need extending!

You need to to get hold of the people who own the other flat and find out what they are alike and whether they are willing (a) to transfer the share of freehold to you -( even this isn't guaranteed) and (b) to extend the lease.

Usually they will be happy to do this because most people can see that it is for both lessees' benefit to help each other but there some strange people out there who either won't do it because they are having some unrelated dispute with your seller or because they simply won't or can't understand the whole nature of shared freehold. It is best for you to check that the other lessees are not in the "strange" category and that they will co-operate in the future.

VictoriaS_3 · 28 November 2009 at 4:32PM

Thanks for your reponse Richard. I'm still a little confused though. Why would I need to ask the other flat owners if they would transfer the share of freehold to me? I thought I was buying the share with the flat... do they also need to agree that I can actually buy it then? Does that mean that I can't extend without their say so? Would we both need to extend at the smae time?

Does the info on the title mean that the two flats are the only parties concerned and that there isn't another 'landlord' apart from the two lesees?

Sorry - so many questions. I am trying to get my head around the whole thing!

Thanks!

Victoria

Fire_Fox · 28 November 2009 at 5:33PM

You will probably find the answers to your questions here:
http://www.lease-advice.org/publications/

Richard_Webster · 30 November 2009 at 3:19PM

Your seller cannot independently transfer the freehold to you or extend the lease without the other flat owner's signature - it is a shared freehold - they both own it so both signatures are needed.

He can transfer his lease to you and you cha mortgage it without the other flat owner's say so, but if you don't get a transfer of the share in freehold you may be faced with the freehold going into a kind of limbo because once your seller has disappeared it will be very difficult to ever get the freehold transferred again.

It also follows that if your seller disappears without the freehold being transferred then it will be expensive an difficult to get the lease extended.

Share of Freehold Leases

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