Will buyers get a mortgage on our property??

frankie16

Desperately seeking advice please! My husband and I have just put our leasehold flat on the market, it's a newish build (2006) and is one of nine in a purpose built block.

We have, however, just found out that the lease for the entire block is being held with HM Treasury, because the builders went bust a while back. I am now really panicking that we won't be able to sell the flat because of this lease issue. I've searched online for any advice and I can't find anything for certain. My question is, will potential buyers still be able to get a mortgage on the property because for the lease ownership issue?

Some residents are keen to purchase the lease but others ar not, so it would be an expensive purchase (£2k upwards) but if this is the only option we have, then we'll go ahead, but I just wanted to ask on here first.

We'll talk to our estate agents first thing as well.

Thanks very much in advance for any help/advice x

G_M

You own this flat right?

So YOU own the lease! That's what you bought and paid for. If in doubt, put your address into the Land Registry site here, pay £4, and download the leasehold Title. Your name will appear as the owner.

You are talking about the Freehold which has a problem, but you do not own, and cannot sell, the freehold.

If ownership of the freehold is in dispute, or being transferred, then there may be some temporay issues around who arranges insurance for the building, does repairs to the structure, but you should still be able to sell your lease.

If you have been offerred the option of buying the freehold, either outright, or a share of it with others, that is an option. It is a totally separate investment, which you could either choose to sell on at the same time as selling your lease, or you could keep it if you wanted.

frankie16

Thank you for the speedy reply G_M, sorry for the confusion, you're right I am referring to the freehold. Sorry for the mix up, we only found out a little while ago and I'm in a right tizz over it all.

The freehold is currently owned by HM Treasury, and because of this I'm worried about potential lenders refusing to lend, I've no experience of this previously, so hopefully I'm worrying about nothing. Thanks again for your help.

frankie16

Morning all, just wondering if anyone else has been in a situation similar to ours, or if there is any further advice out there?
My husband is going to talk to our estate agent as soon as they open to see what she says, but I have a feeling they will just tell us it'll all be ok (regardless of whether it will be or not).

Thanks very much.

BitterAndTwisted

Don't expect to get any sensible or qualified advice from an estate agent about freehold issues. Some of them barely understand the distinction between leasehold and freehold.

If some of the other leaseholders are keen to acquire the freehold and the Treasury are keen to sell on behalf of the creditors then you should go ahead but be warned that all of this could take some time for all of affairs of the company in liquidaton to be settled