Maisonette Flat and buying the full freehold

Lmeola

Hi

We are in the middle of purchasing a first floor maisonette leasehold with a share of the freehold. The vendor owns the full freehold and will ask the owner of the first floor flat if they would like to purchase a share . If the first floor flat refuses to buy a share a of the freehold the vendor will offer us the full freehold.
There are two flats both with private entrances.
Firstly I would like to ask what our options are, could we refuse and just still only have a share of the freehold? Would we have to purchase the full freehold if stated in the contract?
If we do decide to buy the full freehold what are the benefits and disadvantages? We are a young couple and think we are likely to stay here short term (5years max).
We want to convert the loft; will it affect the loft conversion if we are leaseholders with a share of the freehold?
Any advice would be really helpful; we are confused first time buyers.

always_sunny

wouldn't freehold maisonettes make it hard to get a mortgage if you want to resell it?

Lmeola

I thought so too but if we were to buy the full freehold we would still have a lease on the maisonette.

HouseBuyer77

The maisonette will remain leasehold. OP will just own the freehold as well.

Only way you could buy part of the freehold is if someone else agrees to buy the other half, unlikely the vendor wants to own half of the freehold. Highly unlikely anyone else would either so only the other maisonette leaseholder would be interested.

Owning the freehold does mean that doing any improvements on your maisonette is simpler (e.g. extending into the loft). However the lease will place obligations on you to insure the building, keep it in good repair etc. You will be able to charge a service charge on top of the ground rent to the other owner to pay for these things.

So could be fine, could maybe be a bit of a nightmare too depending on the other owner and the precise lease terms. However if it's a freehold over just two maisonettes I can't see there being much trouble.

always_sunny

so would it be like 2 purchases?
1 - maisonette flat leasehold
1 - full freehold for both flats

so when the OP goes to sell, would they sell only the flat and could retain the freehold (like a freehold company)?

HouseBuyer77

Exactly.

However it's unlikely you'd ever want to do that. Ground rent won't provide much of an income (probably) and why would you want the freeholder responsibilities if you're not living in the property otherwise?

Lmeola

Thank you for your reply. The massonette will remain leasehold and if we wanted too we could own the full freehold.

Would it be possible if the vendor could sell us a share of the freehold and he keeps the other share? It is unlikely that he will want to do this.

Would it be possible to see the ground floor flats' lease terms, that way we could see how many years left on the lease and when we could change their lease and hike the prices up? I mean that is the advantage of being the freeholder right, to make some money?
The vendor said he will sell it to us at cost price so around £1000 with the solicitors fees ect.

Lmeola

Whats OP? (sorry very new to this)

always_sunny

absolutely - sounds like a PITA! Especially with leaseholders and statutory right to extent at peppercorn rates! Just curious really...

What about the mortgage then?
I guess the lender would lend on the flat but the cost of the freehold would be not be mortgageable?

Lmeola

Yes, except the vendor doesn't want to keep the freehold - but why should we be obliged to purchase the full freehold if the downstairs flat refuses.

Lmeola

yes, i guess that would be the advantage for us to extend at peppercorn rate. and yes the lender will lend on the leasehold and not on the freehold