Valuer said our leasehold flat is actually a coachouse - PROBLEM?

black_wings

Hello folks,

We are currently in the process of trying to buy a new build flat. The flat is 1 of 2 in the building. Flat 1 is on the 1st floor and flat 2 is on the 2nd floor. The ground level has drive through gates to a car park in the back and as I understand it there is also one car parking space underneath the main structure of the flats as well.
We have just found out the the mortgage valuation as came back with an issue as the surveyor has advised that due to be being a coachouse(?) that it should come with at least a portion of the freehold.
It was my understanding this was simply a normal leasehold flat, regardless of how it looks?

Getting a bit worried now about potential issues with regards to future resale etc? Should we really be classed as a coach house just because there is a car parking space under the structure of the flats?
Any advice greatly appreciated!

G_M

I'm surprised that you are surprised to find it's a coach house. Did you not see the drive through beneath the property when you viewed?

However I'm also surprised the surveyor said: "it should come with at least a portion of the freehold." Some coach houses come with ownership of the freehold, some with a share, some with none.

Provided there is a clear lease identifying who does what (maintenance, service charges etc) I would not expect a proble.

But perhaps lenders are becoming more demanding in their lending criteria. Check your lender's criteria? (google "nationwide coach house lending ctiteria" for example. Or ask them!)

black_wings

I saw the drive through when I viewed it (though it's still being built) but I'm surprised because it is being sold and marketed by the builders simply as a flat. It's a flat on the 2nd floor and there is another flat on the 1st floor. The ground level is a drive through to an open car park. Underneath is simply bin store, bike stores and possible space for one car to park. That's why I'm surprised, because I didn't think just because there is no living accommodation on the ground floor they would class it as a 'coachouse'?

The very first mention of a coachouse is only coming from the mortgage valuation. The builders and my broker are taken aback by it.

The maintenance and buildings insurance are covered by the service charges.

black_wings

G_M wrote: »

I'm surprised that you are surprised to find it's a coach house. Did you not see the drive through beneath the property when you viewed?

However I'm also surprised the surveyor said: "it should come with at least a portion of the freehold." Some coach houses come with ownership of the freehold, some with a share, some with none.

Provided there is a clear lease identifying who does what (maintenance, service charges etc) I would not expect a proble.

But perhaps lenders are becoming more demanding in their lending criteria. Check your lender's criteria? (google "nationwide coach house lending ctiteria" for example. Or ask them!)

But the issue is that as far as I thought, it's not a coachouse? It's a building simply with 2 separate flats. Perhaps I have misunderstood something. Though I see many flats around that have gates underneath which open up to car parking in the rear.
The builders of the development are saying it's not a coachouse.

I've applied with Barclays but I googled nationwides criteria for a comparison and it states that 'A coach house flat is a freehold flat which is the only flat in the block'. So I can only assume that it's not a coachouse flat because it's not the only flat in the block. There are 2 flats. And they are both leasehold.

teddysmum

My understanding is that a coach house is a property part/all of which flies over an entry way or separate garage , so the land underneath, but not included in the property is the problem.

black_wings

Thanks teddysmum. This is something I'm concerned about. However, my point is that I do not think that this flat to be considered as a coachouse. I am having trouble finding a definition of a coachouse but seem to read that it is a coachouse if it involves 1 flat only. We are 2 flats. So in my mind it was just a leasehold the same as any other flat is i.e. you never own the ground the flat is on anyway which is why you pay ground rent?

davidmcn

This is all just guesswork until you see what the title deeds actually say. Have you got a solicitor looking at it yet?

black_wings

The solicitor won't give us anything to see until we have a mortgage offer. So it's a bit of a catch 22.

LittleMax

Are there any similar arrangements already sold? If so could you ask which mortgage company they have used and whether they had any problems.

black_wings

My understanding is other exact same properties on the development have sold without issue.

davidmcn

black_wings wrote: »

The solicitor won't give us anything to see until we have a mortgage offer. So it's a bit of a catch 22.

Tell them they're being ridiculous and that you need this basic info to progress your mortgage application.