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Is it possible to get a mortgage? Freehold/Leasehold
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SAGZ
Posts: 23 Forumite
I would be really grateful for some advice please on a property that I have had an offer accepted on. There appears to be a concern from lenders about owning the freehold for the property and owning one of the leasehold flats. Any advice or links to further information would be really appreciated.
Background
A semi detached property that has been split into three flats. One on the ground floor and two upstairs.
Flat A: Ground floor flat that has the freehold for the entire property (includes the two flats upstairs)
Flat B: Upstairs flat that is a leasehold with 120 years remaining on the leasehold
Flat C: Upstairs flat that is a leasehold with 120 years remaining on the leasehold
Other points that might be helpful:
Background
A semi detached property that has been split into three flats. One on the ground floor and two upstairs.
Flat A: Ground floor flat that has the freehold for the entire property (includes the two flats upstairs)
Flat B: Upstairs flat that is a leasehold with 120 years remaining on the leasehold
Flat C: Upstairs flat that is a leasehold with 120 years remaining on the leasehold
Other points that might be helpful:
- I intend to buy flat A to live in and buy flat B on a buy to let
- I want to purchase both flats and would walk away if I cannot buy both
- I am making a joint application with my wife. I am not a first time buyer but my wife is.
- If me and my wife were to purchase each flat separately, my wife would not meet affordability requirements on flat A. So she would have to purchase flat B and I understand that a buy to let for a first time buyer can be an issue.
0
Comments
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It would probably be better (from a mortgageability perspective), if you bought:
Flat A (leasehold) jointly
Flat B (leasehold) jointly
The Freehold of the building - solely
You would then be buying two leasehold flats - and mortgage lenders have no problems with leasehold flats.
The freehold will be relatively cheap - so you shouldn't need a mortgage for that.0
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