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Remortgaging freehold flat
JMC100
Posts: 6 Forumite
Hi everyone,
Please some advice if anyone could help.
I currently own a freehold flat with my sibling, he has recently purchased a new property so I am in the process of buying him out.
There are 4 flats in the building each with their own entrance, there is no maintenance company and no written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents. Each resident has their own insurance.
The issue now being is that we cannot find a lender to remortgage the flat - our current provider will not remortgage as I have had access to a government grant because of COVID19.
Has anyone had a similar issue? Not too sure what next steps are since there doesn't seem to be many lenders for freehold flats. Feeling anxious as my sibling is now relying on his share to be sold so he can complete on his new property.
Thank you!
Please some advice if anyone could help.
I currently own a freehold flat with my sibling, he has recently purchased a new property so I am in the process of buying him out.
There are 4 flats in the building each with their own entrance, there is no maintenance company and no written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents. Each resident has their own insurance.
The issue now being is that we cannot find a lender to remortgage the flat - our current provider will not remortgage as I have had access to a government grant because of COVID19.
Has anyone had a similar issue? Not too sure what next steps are since there doesn't seem to be many lenders for freehold flats. Feeling anxious as my sibling is now relying on his share to be sold so he can complete on his new property.
Thank you!
0
Comments
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Which country is this?Do any of the flats in the building have leases?0
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The UK - no leases on any of the flats0
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Which country?
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Sorry, England0
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Your options are greatly restricted. I don't know how up-to-date this info is but it gives you a good idea of what you are looking at:
https://www.fridaysmove.com/articles/why-lenders-do-not-wish-lend-freehold-flats-13225
https://www.fridaysmove.com/articles/list-lenders-who-will-lend-freehold-flat-17960
A really good, specialist, mortgage broker should be able to tell you your current options.
Good luck.
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Can somebody explain to me how a "freehold flat" works?
Is it a flying freehold, like a coachhouse?
Or is each flat within its own footprint - in which case, isn't that just a terrace?0 -
You have put your finger on the problem. Under the English (as opposed to Scottish) system, it does not work. Hence the mortgage (and selling) difficulty!AdrianC said:Can somebody explain to me how a "freehold flat" works?
Is it a flying freehold, like a coachhouse?
Or is each flat within its own footprint - in which case, isn't that just a terrace?
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Probably worth checking it actually is a freehold flat and not 'share of freehold'. Are you 100% sure it's the former and not the latter?2024 wins: *must start comping again!*1
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Yes it certainly is a freehold - we have all the documentation proving so0
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Our current lender no longer lends to freehold flats - but having done so in the past can this be overruled if we are not looking to borrow any extra funds? i.e paying sibling out with cash rather than going through a remortgage?0
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