Mortgage broker - ask me anything

K_S

@olivertw It is indeed unusual to have a share of freehold flat in such a large block but I shouldn't think that by itself would make it un-mortgageable at mainstream rates. Do you have the Rightmove ad?

The last time I did a similar mortgage for a client was in a south London block of flats  and it was with a mainstream lender as far as I can remember.

OliverTw

Getting this when trying to post link "You have to be around for a while longer before you can post links".
Here's part of the estate agents details

Key features

• Second Floor
• Resident Caretaker
• 999 Year Lease
• Share of freehold
• Tree Lined Street
• Close Transport

Property description

Tenure: Share of Freehold

Situated on the second floor, this is a spacious studio flat in an attractive purpose-built mansion block within a quietly tree lined street.

In your earlier reply you mentioned "There could be other complications in the background though" - please could you elaborate?

K_S

@olivertw With any leasehold arrangement there are lot of potential issues in the background some of which may be apparent initially and most of which will only come up at conveyancing.

With share of freehold the things that I've seen are a dysfucntional management co, ongoing disputes on repairs, large service charge arrears due to lack of enforcement, general disrepair due to neglect, no one to respond to queries from conveyancers, etc and similar other scenarios which can arise when people don't see eye to eye.

This one? https://www.rightmove.co.uk/properties/103820954#/ If not, please give me the number at the end of the rightmove link

OliverTw said:

In your earlier reply you mentioned "There could be other complications in the background though" - please could you elaborate?

OliverTw

Yes, that's the property.

K_S

@olivertw From experience, central London blocks like these are well managed. If it's a fresh conversion (and hence seen as a "new-build" by a lot of lenders), that may make placing the case a bit tricky, especially at high LTV.

swinstan

Why will lenders not lend on a gifted property until owned for 6 months?

K_S

swinstan said:

Why will lenders not lend on a gifted property until owned for 6 months?

@swinstan Like most other criteria/policies, lenders differ on this. There is no blanket rule and there are mainstream lenders who will consider subject to other factors in the background of course.

Carmen12

Hi I have been declined the mortgage offer extension . I have a debt of 2000 pounds in a credit card I could pay inmediatly and a loan that I could pay as well immediately do you thing I can apply to another lender my salary is 22500 by year and I’m looking to borrow 85900 

kingstreet

OliverTW - Share of freehold is not an actual tenure. This means there is a leasehold property and the leaseholder (wearing a different hat) also owns a share of the freehold; or shares in a limited company which owns the freehold. In the first instance this is a leasehold studio flat and lender criteria should be checked accordingly. The remaining lease term has to be long enough to satisfy the lender, as does any service charge and ground rent escalator. Lenders also set minimum floor metrage for studios. Once all that is taken care of, your solicitor then has to investigate the conditions around the share of freehold.

K_S

Carmen12 said:

Hi I have been declined the mortgage offer extension . I have a debt of 2000 pounds in a credit card I could pay inmediatly and a loan that I could pay as well immediately do you thing I can apply to another lender my salary is 22500 by year and I’m looking to borrow 85900 

@carmen12 Can I ask what's the reason given for the decline?