Mis-represented freehold/leasehold

Adam_Thickett

Hi all,

Me and my gf are first time buyers. We made an offer and had it accepted by the seller on a freehold property that has a flat in what used to be its basement. This caused some problems with the mortgage but is now resolved. We are in the process of conveyance and waiting to hear about a mortgage approval and our solicitors have contacted us saying the sellers are only offering 50% of the freehold and even that is only transferred to us IF the flat is sold.

We feel we were misled by the estate agent and the seller as we were given the impression on all paperwork that we would receive 100% of the freehold with our purchase until the contract was given to our solicitors. Our solicitors have asked and the seller won't budge. We are already £700 out of pocket on searches and broker fees and are now considering pulling out as the whole situation is far more complicated than we wanted. Also I am concerned that we could get rejected for the mortgage as that was submitted in the basis of us owning the freehold and selling on would be a big problem for us when we want to move up the ladder.

Right now any advice would be appreciated as our solicitors are giving us the absolute minimum they can get away with.

Thanks

Adam.

Cakeguts

Do you mean that you thought that you were buying the whole building including the flat but not the vendor is saying that you have to buy the flat seperately?

Alter_ego

As I understand it, you cannot ever hold 50% of a freehold.

It is possible to own 50% of a company which owns the freehold and another party to hold the other 50% (of the company)

Doozergirl

There need to be some leases on the property. If they are splitting the title then it could be purchased with you owning the freehold and owning the lease to downstairs with them being sole leaseholders, or the freehold is shared between the two.

You can!!!8217;t just own the freehold and there not be some sort of !!!8216;complication!!!8217;, simply because there is a flat underneath. You both need the support and protection of the other property to maintain structural integrity.

I think you!!!8217;re possibly blowing this out of proportion. Selling would not be a problem and obtaining a mortgage is not a problem if there is a freehold company and you and downstairs both own a 50% share of that company and both also have leases. Probably 999 years. That set up exists in the hundreds of thousands without issue.

It might sound complicated to you as a FTB, but that is as about as nice a set up as one can expect when one lives above or below another person. Two properties, both responsible for the upkeep and maintenance of the building. As good as it gets, short of not having any upstairs or downstairs neighbours at all.

Adam_Thickett

No. We are trying to buy a house which has been renovated recently and a separate flat added. We were told we would own the freehold and the flat was being sold as leasehold in a separate transaction.

Adam_Thickett

We were explicitly told by the estate agent that the house was freehold and the flat was leasehold. I would not have made an offer on the house had I known that it was not being offered with 100% of the freehold. It was actually a fairly big selling point for me.

Adam_Thickett

We were also told there was not a management company in place for the property which I think is now not the case if I understand what you're suggesting correctly.

G_M

There has been no mention of a management company. Who has told you there is?

Having said that, if

I would not have made an offer on the house had I known that it was not being offered with 100% of the freehold.

then you must choose now between

* walking away from your £700 costs, and the property, or
* biting the bullet and taking whatever is offered (though it still seems unclear pending sale of the flat), or
* trying to renegotiate the price

Sorry. those are the options.

Blackbeard_of_Perranporth

Use your feet. Walk!

Doozergirl

Freehold companies and managing companies are different things.

Why is it so good that your flat has all of the freehold? It doesn!!!8217;t make life any easier, you still have to get money out of the downstairs flat.

bouicca21

Why do you think owning the entire freehold is desirable?