Buying a maisonette and being given the freehold for the entire building

VU_2020

Hi everyone. This is a bit of a cry for help. Basically, I am purchasing a ground floor maisonette with the idea to sell in 2 to 3 years time and the seller is giving me the freehold for the entire property ( upstairs and downstairs maisonette) for free. I have asked my solicitors for some guidance as to what is the best way to gain the freehold in terms of naming some one as the owner of the freehold as I know that it is not acceptable to have my leasehold and the entire property freehold on my name. They are saying that it is not possible, that I should give it up and that it will cause me problems in the future. Basically they don’t want to give me any advice. Forgot to mention, the seller is doing all the paperwork and name changing with his solicitors so I don’t have to pay anything. What are your thoughts? 

Mandaloiian

So your getting more then you asked for and that too for free I wouldn’t be worrying about it id be kissing the current owner and thanking him/her.

bucksbloke

Set up a limited company and ask for the freehold to be transferred to the limited company. 
Have the lease transferred to yourself. 

blue_max_3

It's not unusual to have a leasehold and share of the freehold. I had just such an arrangement. In fact 2 of 3 of us bought the freehold and gave the freehold to the third party, so we all paid our share. You would do that too I would have thought. Otherwise you just have to maintain the building. Maybe things have changed since.

VU_2020

It is not share of freehold. He is actually giving me the freehold for the entire property. He owns the ground floor flat and the freehold of the building.

VU_2020

I want the freehold of the building with the idea of when I re-sell the flat in a few years, I would them have the option to sell the freehold to the two flat owners and make something on top. I think setting up a ltd company might be the correct choice. Just not to sure how this will affect my purchase of the ground floor flat from the bank’s point of view.

blue_max_3

VU_2020 said:

It is not share of freehold. He is actually giving me the freehold for the entire property. He owns the ground floor flat and the freehold of the building.

Yes I understood. All flats are freehold. That's because you need to have some entity responsible for maintaining the common areas, such as the roof. If you own the complete freehold, you take on the responsibility for managing that. It does mean you have to charge both flats equally for any work. The benefit is you can control when and whom does that work. And you can make a charge for managing that - again shared.

davidmcn

VU_2020 said:

I know that it is not acceptable to have my leasehold and the entire property freehold on my name.

Isn't it? Why not?

princeofpounds

The advice of your solicitors is weird and concerning. It’s very simple and normal to purchase a freehold by setting up a company. It’s so normal I can’t imagine why they are warning you off, unless there is some strange detail we don’t know about.

It does involve some paperwork and some building management, but it can also be worth something as you know. Sometimes you can also claim ground rent, service fees, or value on things like extensions or demising attic, cellar or garden space to leaseholders. In particular, it also gives you valuable control; you don’t have someone else making building decisions for you.

Slithery

VU_2020 said:

...with the idea to sell in 2 to 3 years time...

Usually a bad idea. The hassle and fees of buying and selling within such a short time frame means that unless you have run the numbers properly you'd be just as better off renting.

hazyjo

Check responsibilities very carefully. Can expenses be claimed from owners? You don't want to find there's subsidence or it needs a new roof or windows etc and that's out of the freeholder's pocket.

Should be shared, but always tread carefully, especially if getting something for nothing.