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Share of Freehold
StarX_2
Posts: 63 Forumite
Hi there,
I am in the process of buying a "share of freehold property".
I have been thinking it was a good thing over a "normal" leasehold, but I have been reading differing opinions especially about lenders, as they may consider it unsuitable for a mortgage (because of legal intricacies?).
For what I have understood there is not such thing as a share of the freehold, but just a lease from a company which owns the freehold, in which I have a share.
Can someone expand on these two sentences I received from the agency?
"The remaining lease on the flat is approximately 81 years. Extension of the
lease is optional as you are purchasing share of freehold."
"The service charge is #85 per annum and the ground rent is #50 per annum."
Not sure about the ground rent, am I paying it to myself?
Can someone suggest what questions to ask to the estate agency/seller? Shall I alert my conveyancer somehow?
Shall I declare it as simply a leasehold when applying for the mortgage with the lender?
Thanks,
StarX
I am in the process of buying a "share of freehold property".
I have been thinking it was a good thing over a "normal" leasehold, but I have been reading differing opinions especially about lenders, as they may consider it unsuitable for a mortgage (because of legal intricacies?).
For what I have understood there is not such thing as a share of the freehold, but just a lease from a company which owns the freehold, in which I have a share.
Can someone expand on these two sentences I received from the agency?
"The remaining lease on the flat is approximately 81 years. Extension of the
lease is optional as you are purchasing share of freehold."
"The service charge is #85 per annum and the ground rent is #50 per annum."
Not sure about the ground rent, am I paying it to myself?
Can someone suggest what questions to ask to the estate agency/seller? Shall I alert my conveyancer somehow?
Shall I declare it as simply a leasehold when applying for the mortgage with the lender?
Thanks,
StarX
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