Impossible to get a mortgage because I own the freehold to my flat

amnblog

Vickers

Enough said about the freehold/leasehold situation.

Not sure where you are going to find your interest only mortgage even if the property was leasehold?

Unless it is let out and not your home?

Why can you not get a fixed rate from your current lender?

vickers

amnblog wrote: »

Vickers

Enough said about the freehold/leasehold situation.

Not sure where you are going to find your interest only mortgage even if the property was leasehold?

Unless it is let out and not your home?

Why can you not get a fixed rate from your current lender?

I've been told by the broker that getting an interest only mortgage isn't a problem and the property is my home.

I guess I could look to my current lender but this all came about as I was looking for a better deal. It is something I may need to consider though so thanks for reminding me of that option.

vickers

kingstreet wrote: »

Does your property remain leasehold?

You can own the freehold of the building, but your flat remain leasehold. That would be the usual form of ownership in such circumstances, to avoid what is happening here.

You owning the freehold does not make your flat freehold.

I'm just looking at the deeds again and my property has no lease so I'm guessing that means it is freehold. I do have the leasehold details for the other flat though.

Can I make my property leasehold without having to go into creating shared freehold with the other person? Or if I'm going to create a lease for my flat might I as well do the shared freehold thing?

It's all a bit confusing to me at the moment as you can probably tell. Obviously I don't want to spend thousands or involve the other person needlessly. And what if they don't care about having a share of the freehold because their lease has hundreds of years on it?

Am off to follow your link now thank you!

Senior_Paper_Monitor

This affects the mortgageability of your property (as you have already discovered) and therefore its value - an unmortgageable (or even 'difficult to mortgage') property can be perhaps half the value of an identical standard mortgageable property.


In short - this is a big money game.


It is not one to be sorted out on a forum (when even if we know what we are talking about, we don't have the documentation and details to give finite advice).


Get a good conveyancing solicitor (not a cheapo processing factory) on the case - it sounds like it will be the best investment you will have made in many a year.