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  • FIRST POST
    • CJef3
    • By CJef3 8th Oct 17, 12:13 PM
    • 1Posts
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    CJef3
    Shared Ownership - Dormant
    • #1
    • 8th Oct 17, 12:13 PM
    Shared Ownership - Dormant 8th Oct 17 at 12:13 PM
    Hi;

    I am currently in the process of buying a house. However, it is a shared freehold, consisting of two other flats.
    The company that owns the freehold is made up of the three owners of the flats/house; however, the company is currently registered as dormant.

    Will this make a difference with my mortgage in regards to the company being dormant?

    Thanks in advance.
Page 1
    • Richard Webster
    • By Richard Webster 8th Oct 17, 12:56 PM
    • 7,390 Posts
    • 7,101 Thanks
    Richard Webster
    • #2
    • 8th Oct 17, 12:56 PM
    • #2
    • 8th Oct 17, 12:56 PM
    If you are only buying one of the units in the freehold then your mortgage will be on the lease of your part and dormancy of the freehold company should not be an issue. You should get a share in the company and can make it active if that is necessary. Usually, it isn't and the lessees sort things out between them and only use the company framework if it is legally necessary.

    You should not confuse your lender by talking about shared freeholds - you are simply buying the particular leasehold unit - they don't need to know about the freehold situation - that is something that solicitors will look at later.

    Lenders' mortgage staff are not lawyers and can easily get confused and think it is a freehold flat - which is effectively unmortgageable - and you don't want them to think that.
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
    • 00ec25
    • By 00ec25 8th Oct 17, 1:01 PM
    • 5,030 Posts
    • 4,381 Thanks
    00ec25
    • #3
    • 8th Oct 17, 1:01 PM
    • #3
    • 8th Oct 17, 1:01 PM
    I am currently in the process of buying a house. However, it is a shared freehold, consisting of two other flats.
    Originally posted by CJef3
    no you are not

    it appears you are buying a leasehold flat which gives you rights to also have a part in the freehold

    you are not buying a house!
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