Buying a freehold flat - hard to sell later?

chazsucks

I've heard that it's difficult to get a mortgage on a freehold flat.

There is one I'm looking at that's been on the market for about 2 and a half months, the price has been dropped once already. It's a two bed flat but it has a large hallway and bedroom so there is the potential to turn it into a 3 bed.

We're still going through probate so obviously can't buy yet but if this is still on the market once we have been granted probate I would be interested in it. And the mortgage isn't an issue as we'll be cash buyers as we're selling this house as soon as possible.

It's the cheapest in the area (probably due to the freehold?) but in good condition

I'm just worried that when we come to sell it'll take a long time / we'll have to drop the price to get a buyer...

G_M

It's cheap for a reason.

When you sell, the same reason will apply so you'll have to sell cheap.

Is it truly a freehold flat? And where is it?

RedheadFred

Surely a freehold flat is more appealing? No leaseholders charging through the roof, or having to worry about renewing the lease?
Maybe there's another problem with it, or maybe the owners are just in a rush to sell - neither look ideal for your situation!

princeofpounds

Surely a freehold flat is more appealing? No leaseholders charging through the roof, or having to worry about renewing the lease?

No. Freehold flats are a legal minefield. Google 'flying' and 'creeping' freeholds. Basic problem is no effective legal way of dealing with common responsibilities like walls, the roof, hallways etc.

Owning a leasehold and a share of the freehold is more similar to the situation you describe (or commonhold, although unfortunately that legal reform has had almost no adoption).

westv

If you are prepared to accept that you'll only sell on to cash buyers, you have evidence that there is a market for the flats and that there is some sort of formal arrangement for collection of service charge and maintenance of the common parts then I wouldn't totally write it off.

chazsucks

G_M wrote: »

It's cheap for a reason.

When you sell, the same reason will apply so you'll have to sell cheap.

Is it truly a freehold flat? And where is it?

Yes that's what I was thinking... It just says tenure: freehold and is above shops

http://www.rightmove.co.uk/property-for-sale/property-49419362.html

Not sure if this will work but this is 2 bed flats in the area sorted by price, as you can see it is the cheapest. I much prefer the second in the list but it's 40k more and probably won't be around once we've got probate and sold our house unfortunately .

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E96951&insId=2&sortType=1&minBedrooms=2&maxBedrooms=3&retirement=false

The first is more likely to still be hanging around if it's hard to buy plus if it is we may be able to knock the price down a little more. Only problem is that's great for buying but worrying when it comes to selling later lol

chazsucks

RedheadFred wrote: »

Surely a freehold flat is more appealing? No leaseholders charging through the roof, or having to worry about renewing the lease?
Maybe there's another problem with it, or maybe the owners are just in a rush to sell - neither look ideal for your situation!

That's what I thought too but apparently most lenders don't like them because it's hard to gauge responsibility for stuff like exterior problems etc whereas with leasehold you all pay towards the upkeep... if you see what i mean