mortgage on a freehold flat?

cluelessoncanvey

Hi reading freehold advice and getting confused, the general opinion is it's very hard if not impossible to get a mortgage on a freehold. But then Martin says there's no such thing as a freehold, elsewhere I read that often its a commonhold that's mismarketed as a freehold, then I read that often things are falsely advertised as freehold and they are not etc. When I get into posts here on the nitty gritty I glaze over and can't quite suss it. SO a simple question:

I'm going to view a 'share of freehold' property on saturday, its a 50/50 share of the freehold with the flat below. There's also a leasehold on the property of around 70 years, but the sellers having trouble finding the details. From what I can make out am I right in thinking that as long as there's a leasehold on the freehold I'll be ok to get a mortgage or not? Realise i mgiht have to ask questions of the seller, as she is showing me around on the day, to establish the exact situation (hopefully as a leasehold you pay a charge to the freehold, also partly yourself, and that should cover yourself when you get a mortgage is that right?)

Also read advice not to tell its advertised as freehold to the mortgage people as they would assume its leasehold, that doesn't seem right, surely they'd check

amnblog

I think you need to engage a mortgage broker before you shoot yourself in the foot with your online research.

cluelessoncanvey

I spoke with a mortgage broker who said it should be ok. Viewed the place yesterday, we thought it ok. Putting my first ever bid in soon, getting nervous, don't like it, this is all starting to seem real! (being a grown up and getting a mortgage, I mean like, I'm only 43). What I don't know is how much it cuts down the market the fact I am going for a flat with a leasehold and 50% of the freehold.

Kynthia

The flat is leasehold, the fact you are also buying a share of the freehold doesn't change that. A freehold flat is different so don't tell a mortgage lender the property is freehold as it can cause problems.

lovehackney

As above, a share of freehold flat is different to a freehold flat.
Lenders do not usually have problems lending on a flat with a share of freehold.

Mortgage_Mark_2

"Martin says there's no such thing as freehold"

Yes, Martin, there are a fair few freehold flats about!

benjus

More to the point, strictly speaking there's no such thing as a "share of freehold flat". It's a leasehold flat sold together with an interest in the building's freehold, usually shared between all leaseholders either directly or via a jointly-owned company. "share of freehold" is a convenient shorthand for this, but it does confuse the uninitiated.