Remortgage and freehold purchase

becominganobsessivesaver

We've been in our current property 2 years (and 2 days!) and I'm putting together a plan for next year when the fixed rate part of our mortgage ends (we currently have part on a tracker, 1.45% and part on fixed rate 3.99%). Our house is also leasehold, ground rent of £130 p.a and 105 years remaining.

This will be the first time we have remortgaged, we will have at least 75% LTV based on our purchase price (possibly 70%), so I have a few questions

1) can the freehold purchase be added to the mortgage, and does this usually increase the valuation by the same amount?
2) is it easier to buy the freehold at the same time as a remortgage, do you need a solicitor for remortgage?
3) does anyone have any idea of approximate legal costs for freehold purchase (house)
4) how far in advance can you 'lock in' a mortgage deal?
5) is it best to work on purchase price for my property when shopping around, ignoring the increases on the likes of zoopla?

Thanks in advance

TrickyDicky101

Have you approached the freeholder yet to ask how much they would sell the freehold to you for? This would be your first step. Note that some freeholders will tell you you need to pay £££ for them to even offer you a price. If this is the case then you may have statutory options instead (which I assume you were considering given you have mentioned your 2 year anniversary?).

Question: are there any provisions for Groud Rent increases in your lease? This could materially impact the fh valuation (and thus cost to you)?

These are my opinions on your questions - but note I am not a broker so probably best to take them with a pinch of salt:

1) Potentially dependent on LTV and product sought. Do not expect the valuation to increase as a result of the purchase. You will not be able to use the valuation after fh purchase as the basis for LTV on the mortgage if you are dependent on the remortgage to fund the fh purchase.
2)No idea if it is easier but if you intend to switch lender then you will require a solicitor (or the lender will require you to employ one). If you stay with your current lender this may not apply.
3) £1k maybe. That's just legal costs. You also need to fund the purchase cost.
4) Usually 6 months, dependent on product
5) That would be a prudent basis on which to approach it (unless you bought a new build in which case any new build premium will have expired so valn may actually be less than purchase price, depending on where you bought)

becominganobsessivesaver

Thanks. The freeholder has said they have no plans to sell, therefore it would need to be the statutory route. Increases are linked to inflation. The house was 6 years old when we bought, with new build houses of the same style selling for 10% more.

The 6 month thing is good to know, our fixed rate ends December next year, so I'll start looking from June time. I'm thinking a 5 year fixed could be worth while, but I'll see what's out there at the time.