Help Help????

jqy

Am still on about this flying freehold! i am having problems getting a mortgage broker,willing to take this property on, the property is 75% flying freehold and we have been told it's creating a problem, the present owner bought the house cash and has done it up, he did not need to borrow any money.
does any one know who might help? any advise will be greatly appreciated - cheers

zzzLazyDaisy

In some parts of the country flyng freeholds are fairly common, especially where large old houses have been divided into flats, but not converted to leasehold.

The way round the problem is that the seller purchases an insurance. Afriend recently sold a house with a FF in Cornwall, and the insurance was £400. The people who bought it got a mortgage with no problem. The seller should see his solicitor and sort this out, because any prospective purchaser is going to run into the same problem, unless they are a cash buyer.

What does your solicitor say?

Elliott_Woods

£400. sounds very expensive for Indemnity Insurance - jqy should get solicitor/conveyancer to get vendors solicitors to get quotes for Indmentiy Insurance. The Vendor should then be asked to pay this.

dougk_2

From my previous experience Flying Freeholds over 40% start to cause problems.
Yes the indeminty will help but there are still lots of lenders that will not entertain a Flying Freehold property. There are all sorts of other issues that the solicitor will have to check and make sure there are provisions for (access and responsibilities etc), so expect the solicitors bill to be higher too.

The property we were looking at was £240k and the indeminity was about £200, but that was only 15% Flying freehold and several lenders were not interested. This was made even more difficult because of the LTV ratio and the amount we wanted to borrow in conjunction with our joint incomes (we wanted to borrow 3.2 x joint) - we were left with a choice of about 3 mainstream lenders!

Your solicitor maybe able to advise some lenders or an FA if the Flying freeholds are common in the area.

jqy

Thanks guys,
ZZZlazydaisy, we haven't gone to the solicitors yet, we thought we would see if we can find a mortgage first ( not sure if this is the besy way round) so we are waiting to hear from our independent mortgage lender ( i have a feeling he is not having much luck it's been two days!) Dougk you are right we were told that if the FF is over 40% it will create problems you are talking 240k we are looking at 110k it is alot of money in both cases for anything to go wrong, and as you say you are left with only few lenders if you get them, which complicates remortaging, reselling etc. we realise that the solicitors bill would be very high is it worth it only to realise we cannot have the property???
Elliot the indemity insurance is something i will keep in mind if we get anywhere with this house.
Thanks alot guys.

herbiesjp

There are a couple that spring to mind that would look at this for you, but would need a little more information on the property.