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Halifax: Leasehold with Share of Freehold
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plunt
Posts: 525 Forumite
Hi all,
Looking at purchasing a property which is a ground floor maisonette. It comes with a leasehold of around 950 years (confirmed) and a 50% share of the freehold. There is no ground rent or service charges and has a joint buildings insurance policy with the upstairs flat (flat upstairs owns the other 50% of the freehold)
I am trying to understand if Halifax will find this acceptable for a mortgage. It is in a desirable location and valuation came back brilliantly (the valuation indicated it is actually probably worth more than I am paying....)
I have looked through the CML handbook and not entirely sure what to make of it regarding my situation.
Anyone had any experience with the above or know about Halifax's criteria? (there site openly says no to freeholds, but unsure as its a combination of both!)
Many thanks for any advice provided!
P
Looking at purchasing a property which is a ground floor maisonette. It comes with a leasehold of around 950 years (confirmed) and a 50% share of the freehold. There is no ground rent or service charges and has a joint buildings insurance policy with the upstairs flat (flat upstairs owns the other 50% of the freehold)
I am trying to understand if Halifax will find this acceptable for a mortgage. It is in a desirable location and valuation came back brilliantly (the valuation indicated it is actually probably worth more than I am paying....)
I have looked through the CML handbook and not entirely sure what to make of it regarding my situation.
Anyone had any experience with the above or know about Halifax's criteria? (there site openly says no to freeholds, but unsure as its a combination of both!)
Many thanks for any advice provided!
P
0
Comments
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The property is leasehold. That is all the lender cares about.
The fact that you will own part of the freehold is not particularly relevant.
Effectively, you will be two people. You will be the leaseholder of the flat and mortgagor of the leasehold interest.
At the same time, you will also be part-freeholder of the building but as I said this is not relevant to the mortgage.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »The property is leasehold. That is all the lender cares about.
The fact that you will own part of the freehold is not particularly relevant.
Effectively, you will be two people. You will be the leaseholder of the flat and mortgagor of the leasehold interest.
At the same time, you will also be part-freeholder of the building but as I said this is not relevant to the mortgage.
Super fast response and the answer I was really praying for. Thanks!!0
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