Freehold v Leasehold

CPS

Hi,
I have received my mortgage offer from the Post Office (very good service btw). I told them the house I was buying was freehold (I guessed / assumed), but the survey has come back saying it is leasehold.

I will obviously let them know but is it likely to make any difference to them?

kingstreet

That would depend on how long is left on the lease.

If it's less than 70 years from the date of completion of the mortgage, Bank of Ireland won't lend on it.

Presumably the surveyor has valued the property as leasehold, so that should be okay, as long as he was told the residual lease term at the time.

CPS

kingstreet wrote: »

That would depend on how long is left on the lease.

If it's less than 70 years from the date of completion of the mortgage, Bank of Ireland won't lend on it.

Presumably the surveyor has valued the property as leasehold, so that should be okay, as long as he was told the residual lease term at the time.

Thanks. Survey states that the remaining term on the lease is not known and they have assumed a minimum term of 70 years for the purposes of the report.

Guess that means I / Solicitor need to find out the length of the lease before going back to the Post Office to advise them.

kingstreet

Yep. Spot on.