We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Been stung in the housing market!
Moneysavingamateur
Posts: 89 Forumite
Firstly hello everyone, I have been a fairly long lurker and am now a new poster on these boards. I dont think I have ever come across a more supportive group of people.
I have a bit of a housing issue that I would appreciate some discussion over.
About five years ago, my now partner bought a maisonette in Sheffield for £77,500. Four bedroom place above an empty commercial premises previously used as a bookies. She bought the house on the understanding that it was a FLying Freehold. We understand totally what the implications of this are. However upon trying to sell the property again, it emerged that the property was in fact a freehold flat, an entirely different proposition when it comes to mortgage suppliers. As a consequence we took the solicitor that conveyanced for us to court and settled early as we viewed the risk of going to court to be too high to risk.
To cut a long story short, we refurbished the property and agreed a sale at the beginning of 2006 at £101,500 this fell through on the grounds of being a freehold flat. Since then we have rented the property.
We have now kind of accepted that we need to cut our losses and could if honest do without the hassle of renting the place. So we are quite keen to get it off our hands. So I just wondered if anyone had any ideas that might ease the process of selling what is a difficult to sell property. It is however only difficult to sell in the context of being freehold flat as when we sold initially we had four people bidding against it!
We have an outstanding mortgage of £60k on the property and would be willing to let it go for not too much more than that. To be honest, our priority is now to clear the mortgage, anything else being a bonus. We would then put this down to one of life's little lessons.
Any advice would be appreciated.
Chris
I have a bit of a housing issue that I would appreciate some discussion over.
About five years ago, my now partner bought a maisonette in Sheffield for £77,500. Four bedroom place above an empty commercial premises previously used as a bookies. She bought the house on the understanding that it was a FLying Freehold. We understand totally what the implications of this are. However upon trying to sell the property again, it emerged that the property was in fact a freehold flat, an entirely different proposition when it comes to mortgage suppliers. As a consequence we took the solicitor that conveyanced for us to court and settled early as we viewed the risk of going to court to be too high to risk.
To cut a long story short, we refurbished the property and agreed a sale at the beginning of 2006 at £101,500 this fell through on the grounds of being a freehold flat. Since then we have rented the property.
We have now kind of accepted that we need to cut our losses and could if honest do without the hassle of renting the place. So we are quite keen to get it off our hands. So I just wondered if anyone had any ideas that might ease the process of selling what is a difficult to sell property. It is however only difficult to sell in the context of being freehold flat as when we sold initially we had four people bidding against it!
We have an outstanding mortgage of £60k on the property and would be willing to let it go for not too much more than that. To be honest, our priority is now to clear the mortgage, anything else being a bonus. We would then put this down to one of life's little lessons.
Any advice would be appreciated.
Chris
0
Comments
-
Im intrigued why does it matter if the flat is freehold?0
-
carefullycautious wrote: »Im intrigued why does it matter if the flat is freehold?
Most lenders won't lend on a freehold flat, since you only own the precise part of the building that contains your flat, rather than a share of the overall freehold of the building. This can cause serious difficulties if your bit of the building develops structural problems.
Note that a freehold flat is not the same as a leasehold flat with a share of freehold.0 -
Have you spoken to the owners of the shop downstairs? It would be worth paying to set up a company to hold the freehold of both and issue leases. If it were me I'd be happy to pay for the cost of that in order to increase the value of the property. Downstairs will be affected too by this, it's worth a go if you haven't already tried.
Otherwise the absolute best option for your property is auction. I'd go with one of the nationals - allsop or savills to get good coverage. It's too much of a niche market to have it on with a high street estate agent.Everything that is supposed to be in heaven is already here on earth.
0 -
You could speak to an auction house and see what they say?
Perhaps list it with a £60K reserve.0 -
No posts for hours then Doozergirl pips me to it!
And much more eloquently too.0 -
-
Stick it in an auction. You're not after a lot for it - you'll need a cash buyer/investor really ... and at auction you'll stand the best chance.0
-
Have you spoken to the owners of the shop downstairs? It would be worth paying to set up a company to hold the freehold of both and issue leases. If it were me I'd be happy to pay for the cost of that in order to increase the value of the property. Downstairs will be affected too by this, it's worth a go if you haven't already tried.
Otherwise the absolute best option for your property is auction. I'd go with one of the nationals - allsop or savills to get good coverage. It's too much of a niche market to have it on with a high street estate agent.
I agree. There will be long term maintenance issues for the shop owner - what happens if the roof leaks? However, it is more of an issue for you than him and he may not be wanting to sell and being commercial premises the problem of mortgageability may not be so apparent.
Another thought - this kind of property would be very attractive for letting to students if it is in Central/West Sheffield. If that was the case might be worth keeping?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.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.4K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.4K Work, Benefits & Business
- 599.6K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards