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Help!! Freehold/leasehold flat confusion!!
Comments
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Perhaps the leaseholders set up a company in order to buy and manage the freehold? You really need to raise this with the estate agent to get an accurate answer!Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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Hi
Interesting - I am about to put offer on a share of freehold flat which is two floors of 3 floor victorian conversion. The bottom flat is share freehold too. I understand therefore the two flats of the building both have share of freehold, however on the HIP Freehold is ticked but the lease part is also filled out and it seems has 107 year lease on it. There is a leasehold contract and a building company registred as holding the lease. Where does this leave me? confused about what the freehold is then. How can I have share of freehold yet a third party has the lease? Any ideas? Is this normal?
........thanks
All this share of freehold confusion...
Both flats will have leases. You will be buying the lease of your flat which will belong to your seller. That is what your mortgage lender will be lending on - don't confuse them by using the word "freehold" in connection with the flat - it only confuses them and can cause them to refuse you a mortgage because they confuse "share of freehold flat" (OK) with "freehold flat" (not OK unless in Scarborough and you are borrowing form one or two lenders).
If the freehold is literally held jointly by your seller and the owner of the other flat the owner of the other flat and your seller will have to transfer the freehold so that it belongs to you and the other flat owner. Check with the other flat owner that is happy to do this, because sometimes if the flat owners are arguing with each other they use refusal to sign over the freehold as a negotiating tool.
If the freehold title belongs to a company the ownership of the freehold won't change when you buy the flat but you will become a member of the company/have a share in it.
They ticked freehold in the HIP because cheap HIP providers don't understand shared freehold and get it wrong!There is a leasehold contract and a building company registred as holding the lease.
Are you buying from this "building company" then? Or do you mean that it owns the freehold title?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
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