Flat with leasehold and downstairs freehold

stealthben

I am looking to buy a flat but there is a strange twist to the sale in that it is a leasehold with the freehold for the flat below and the flat below owns the freehold to the flat that is for sale. Is this all above board and mortgageable.

Thanks

Stealthben

Richard_Webster

Most lenders will accept these criss-cross or crossover leases. See 5.5.4.2 of the CML handbook at http://www.cml.org.uk/handbook/frontpage.aspx

which says:
5.5.4 Where the security will comprise:

5.5.4.2 one of two leasehold flats in a building where the borrower also owns the freehold reversion of the other flat and the other leaseholder owns the freehold reversion in the borrower's flat; check part 2 to see if we will accept it as security and if so, what our requirements will be.

You will need to check your lender's specific requirements in Part 2 - to do this go to the web address above. Where it says "Select handbook" select England & Wales - if it is not in England and Wales none of this is relevant! Then select your lender from the drop down list and go for one of the options that allows you to see Parts 1 & 2.

Most lenders will accept this scheme used by Laings for their maisonettes and also found extensively in older properties on Tyneside apparently. They will probably require that the mortgage is on both the leasehold title of the flat you are buying and the freehold of the other flat and that the lease requires the titles always to stay in the same ownership.

It is quite a neat little scheme because it means that between you, you and the other flat owner control the building and there is no outside landlord.

stealthben

Thankyou very much