Freehold Flat!! HELP!

jaylea

I have put an offer in on a flat in a victorian house. There is 7 flats in total. We was told by the Estate agent it was freehold but by the financer it was Leasehold. The flat is a repossession. We have now found out is freehold. I have checked on the land registry and all the 7 flats are freehold. We have the mortgage Agreement of Principle with Abbey but I dont know where this leaves us regarding getting a mortgage. I have spoken to my solicitor and he has asked us for more information. I have also spoken to the estate agent and he has no idea regarding freehold and leasehold so I am a bit stuck and dont know who to speak to regarding the matter. Nobody seems to know anything regarding the property!

I dont want to get myself into a situation where I cannot sell the property on. I have very little knowledge on house buying as this is my first time.

Any information would be a big help.

kingstreet

Start running and do not look back...

You'll have trouble buying it and even more selling it. Find somewhere else.

GAH

I agree, walk away from this.

When I read your first line, 7 flats in converted house, sounded like trouble straight away without even reading on.

westv

I'm in the process of buying with cash a freehold flat but am going in with eyes wide open and with the full knowledge that the market for this type of property is limited due to the lack of mortgages. The fact that the flats where I am buying are very well run and maintained by a tenant management company (confirmed by solicitor) is a major factor for me - although I know this will have minimal impact when it comes to sell.
However, if I was someone who needed a mortgage and saw a Victorian conversion made into freehold flats I think I would run away too.

Richard_Webster

I have checked on the land registry and all the 7 flats are freehold.

So each has a separate freehold title. If you do a property search at the LR and search for flat 1, flat 2, etc in most blocks of flats you will find a separate leasehold title for each flat and the same title number for each flat as far as the freehold is concerned. That's OK - one freehold for the whole building. When there are different title numbers for separate freeholds of individual flats you need to worry.

For all practical purposes a flat with a separate freehold title is unmortgageable. RBS and Nat West say they will lend. but their conditions regarding an enforceable scheme of mutual covenants usually can't be complied with.

pjran

Sorry to ask questions but why would should a freehold flat be a problem?

My son has made an offer on a ground floor freehold flat, there's only one other flat involved and thats the upstairs one which is let.

jaylea

Hi Richard,

I just put in the house number and postcode and it bought up all the flats in which each one says Freehold underneath.

What do I need to look for on the land registry?

Sorry, I have never done this before so I am totally clueless, and really am starting to panic as nobody is helping me out e.g the estate agent, mortgage advisor and solicitor. Nobody seems to know whats going on regarding it.

westv

pjran wrote: »

Sorry to ask questions but why would should a freehold flat be a problem?

My son has made an offer on a ground floor freehold flat, there's only one other flat involved and thats the upstairs one which is let.

This might help to explain.

http://www.rwco.co.uk/freehold_flats.htm

The situation you mention sounds more like it might be either share of freehold or the freehold of the entire buidling.

jaylea

Richard it says Tenure : Freehold

Thats on all of them. Do I need to buy the Title Register to find out more?

Richard_Webster

Does it say "Tenure Leasehold for any of them?"

Does it give the title numbers? My access to the LR allows me to see the title numbers - but not any more detail - so I can tell if it is the same number for all the flats or different numbers. Are you able to see the title number for each flat? If there are different numbers you have a problem - if they are all the same number you have a freehold building and may be the seller is going to grant new leases of the individual flats.

If each flat has a separate freehold then it will not be mortgageable.

jaylea

Hi Richard,

No they all say freehold, and I am unable to see the title number on any of them.

If I message you the property number and postcode could you have a look for me?