HELP! Being a freeholder and leaseholder of my new flat

Estlou

Hi all got a bit of a situation, going through a divorce and have been looking for a new abode. Found a flat in a converted Victorian semi, ground floor with parking and gardens. So I will be the freeholder and also have a lease on the flat, I can't really find any info on the Internet that explains the full responsibility of this. I don't want to end up having to chase people for money. There is only one other flat (upstairs) which will be still owned by the current owners of my flat. This itself seem about odd and its is up for sale currently empty. My main concerns are that firstly the mortgage valuation came back £11k under the agreed sale price and that a previous homebuyers survey done by buyers who pulled out before xmas didn't give a valuation due to the extent and nature of the works needed. The vendors have done some of the most pressing works but there were still things like, leaning chimney stack, no flashing around the stack, re pointing near damp course, concrete roof tiles, windows of original sash single pane and in OK condition. on top of this it is an ex-rental that needs extensive cosmetic repair. So if I am the freeholder I'm effectively responsible for the works as in making sure they are fixed. I'm worried about this extra responsibility and if I am buying a money pit! So if anyone knows either about how to read a homebuyers report and the implications of owning the freehold of a 2 flat property while also being a leaseholder, I would be most grateful for some advice. Thanks 🙏

Riggyman

Buy a different flat.

Estlou

That's the problem there aren't any

G_M

then either rent don't buy, or buy this but at a prie that reflects all the work that is outstanding.

As freeholder for the building you will have to arrange all the repairs to the building itself. You will then pass on those costs to the 2 leaseholders, in accordance with the terms written in the leases. So probobly you and the owner of the lease upstairs will share the costs 50/50.

As leaseholder of your own flat you'll be soley responsible for both arranging and paying for the internal upgrading (re-decorating etc) of your flat.

So before buying, you need to

* read/understand the leases
* get costings for the building repairs
* get costings for the flat improvements

steeeb

Beware of the underlined probably 50/50.

If the person selling still has the flat upstairs it could be that they're trying to pull a fast one selling off the freehold with the other flat to try and get out of having to pay for all this maintenance that needs doing.

Buying the leasehold without the freehold won't really work either as you'll still need to pay 50% of all these costs, you won't have the hassle of organising it but you also won't have any say as to when these happen and whether it's the cheapest they're going for or not etc.

davidmcn

Surely preferable that you have the freehold and can therefore control the repairs (rather than someone else dictating it and/or making a profit out of you?). I'd be more concerned about what the necessary repairs are going to cost.

rtho782

Walk away, walk away.

bouicca21

Are you going to be the freeholder of the whole building or share the freehold with the other flat?

Read the lease (and the lease for the other flat, download it from land registry) to see exactly how maintenance costs are shared. 50/50 is common but I've seen others where e.g. only the top flat is responsible for the roof.

davidmcn

bouicca21 wrote: »

Read the lease (and the lease for the other flat, download it from land registry)

If both flats (and the freehold) are being sold by the same party then it's possible/likely that these will be new leases i.e. to be negotiated during the sale and not yet registered.