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BTL / Share of Freehold
shimano
Posts: 157 Forumite
I am thinking of buying a flat that is share of freehold (I have confirmed that each flat has a formal leasehold, but all owners have a share of the freehold company, and the paperwork on the lease etc looks kosher)
I am getting confused as I am being told that for BTL properties, freehold flats are not allowed. Am I right in saying that is a situation that is not above, i.e. no leasehold and the flat owns the freehold etc?
I am getting confused as I am being told that for BTL properties, freehold flats are not allowed. Am I right in saying that is a situation that is not above, i.e. no leasehold and the flat owns the freehold etc?
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Comments
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It is not a freehold flat if it has a separate lease.
Having a share of the freehold via shares in a management company is the typical way the situation is set up.
You can mortgage as normal.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Thank you, just looking at Santander lending criteria as example, it says the following. would what you describe still be eligible?
Leasehold property where a controlling share of the freehold is also owned by the borrower (unless the freehold can also be held by us as security for the mortgaHe)0 -
If you share the freeholder with the other leaseholders you do not 'control' it.
You may wish to engage a broker rather than try to explain this one to Santander.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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