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Flat's Leasehold Extention/ Freehold Purchase

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stanmoresaver
stanmoresaver Posts: 614 Forumite
in House buying, renting & selling
One for the legal eagles!!! Please help.

Hi,

If a person is buying the flat downstairs from the flat they already own and live in (it's a converted house) and at the same time has the oppurtunity to buy the freehold to cover both flats, can they do so and then extend the leases.

Or can they issue new leases as they will be the new leaseholders?

I'm confused!.

Thanks in advance!
I am a fee charging WoM Mortgage broker.
I now no longer give information and opinion within the Mortgage boards, because a number of posters who, having approached me professionally, agreed my fee-which has been been made very clear at the outset, taken my advice (normally cancelling a [home visit] meeting at short notice) have then approached one of the fee-free brokers on here to arrange the very same deal I have advised.
Whilst I totally concur with the ethos of "money saving"- abusing the goodwill of a professional who provides a quality service is taking it too far! :mad:

Comments

  • pboae
    pboae Posts: 2,719 Forumite
    1,000 Posts Combo Breaker
    Are there any other flats in the property?
    When I had my loft converted back into a loft, the neighbours came around and scoffed, and called me retro.
  • stanmoresaver
    stanmoresaver Posts: 614 Forumite
    No- Converted edwardian house Freehold covers just these flats
    I am a fee charging WoM Mortgage broker.
    I now no longer give information and opinion within the Mortgage boards, because a number of posters who, having approached me professionally, agreed my fee-which has been been made very clear at the outset, taken my advice (normally cancelling a [home visit] meeting at short notice) have then approached one of the fee-free brokers on here to arrange the very same deal I have advised.
    Whilst I totally concur with the ethos of "money saving"- abusing the goodwill of a professional who provides a quality service is taking it too far! :mad:
  • pboae
    pboae Posts: 2,719 Forumite
    1,000 Posts Combo Breaker
    If one person buys both flats, and also buys the freehold, they will be leaseholders and also also the freeholder, (being the freeholder would be independent of them being leaseholders). They could 'marry' the freehold and leasehold, and make the 2 flats share of freehold. Or they could remain the freeholder and either extend the leases or issue new ones, varying the terms of the leases if they wished (as long as neither flat was let to a 3rd party).
    When I had my loft converted back into a loft, the neighbours came around and scoffed, and called me retro.
  • stanmoresaver
    stanmoresaver Posts: 614 Forumite
    Thank you pboae- thats what i thought and gives me the confidence to challenge a clients solicitor who syas otherwise.
    I am a fee charging WoM Mortgage broker.
    I now no longer give information and opinion within the Mortgage boards, because a number of posters who, having approached me professionally, agreed my fee-which has been been made very clear at the outset, taken my advice (normally cancelling a [home visit] meeting at short notice) have then approached one of the fee-free brokers on here to arrange the very same deal I have advised.
    Whilst I totally concur with the ethos of "money saving"- abusing the goodwill of a professional who provides a quality service is taking it too far! :mad:
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    They could also extinguish the leases and return the property to being a freehold house if they so desired, AFAIK.

    Quite often the lenders seem to have a better grasp on freehold/leasehold issues that the solicitors.
    Trying to keep it simple...;)
  • pboae
    pboae Posts: 2,719 Forumite
    1,000 Posts Combo Breaker
    :-o you might want to check with a real legal bod first, I'm just a lowly ex-leaseholder. Good luck with it though.
    When I had my loft converted back into a loft, the neighbours came around and scoffed, and called me retro.
  • RiskAdverse100
    RiskAdverse100 Posts: 125 Forumite
    There is a trap that you want to avoid if you intend to extend the leases once the other flat and the freehold have been bought.

    The freehold must be bought in a different name otherwise there will be problems when the leases are extended.

    This is because it is not legally possible to grant a lease to yourself.

    It is possible to own a freehold interest and two leasehold interests in the same name where they are purchased separately.

    Extending a lease involves, in legal terms, cancelling the existing lease and then immediately granting a new lease for a longer term. All the other terms of the new lease will be the same as in the existing lease, unless minor changes are needed.

    Once any leases have been extended it would be possible to transfer the freehold as well so that all three interests were in the same name.

    RiskAdverse100
  • cattie
    cattie Posts: 8,841 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    For good advice regarding residential leasehold property these are the people to contact. It's a goverment funded advice agency. http://www.lease-advice.org/newintro.htm
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
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