Freehold lease clause

Pixxeh

So I put down an offer on a freehold apartment in August, despite it being a freehold it still have a lease, the lease has been extended to 125 years because apparently it can't be on a longer lease than the other 4 apartments. I looked back over my mortgage offer and it had a special clause of the property needing a minimum of 900 years on the lease, my conveyancer hasn't said anything  about this, is that because it's freehold and doesn't count or am I essentially going to lose the property? Wonder if anyone can help! Thanks in advance!! 

MattMattMattUK

Raise it with your conveyancing solicitor, that is what they are paid to do. What you will probably find in the way these things work is that you jointly own the freehold with the other flats, but your individual flat has a leasehold (the same as the other flats), which is renewed automatically and for a peppercorn rent. However that is my guess, you should certainly speak to the solicitor, who will have sight of both the full mortgage contract and the deeds. 

davidmcn

It's not a "freehold apartment", it's a leasehold one (like almost all flats in England & Wales), but you'll also jointly own the freehold for the block with the other flats.

What exactly does this clause in your mortgage offer say, as it sounds unusual? Generally the valuation will assume a reasonably long lease, if for some reason they've assumed a 900+ year one then it should just be a question of the lender running the actual lease terms past their valuer. Though I suspect the reason your conveyancer hasn't raised it is because you've misunderstood the clause and your conveyancer hasn't.

Pixxeh

davidmcn said:

It's not a "freehold apartment", it's a leasehold one (like almost all flats in England & Wales), but you'll also jointly own the freehold for the block with the other flats.

What exactly does this clause in your mortgage offer say, as it sounds unusual? Generally the valuation will assume a reasonably long lease, if for some reason they've assumed a 900+ year one then it should just be a question of the lender running the actual lease terms past their valuer. Though I suspect the reason your conveyancer hasn't raised it is because you've misunderstood the clause and your conveyancer hasn't.

The 'special condition' states "The Gth floor flat is subject to a lease which has 900 years still to run at a ground rent of £0 each year" 

Ground rent is £0, the seller is extending lease to 125 years because something about one of the others extending it to that, i am not entirely sure how it works. 

My conveyancer has picked up on every other little thing, so am shocked if she has missed this. I just am so worried i am going to be over £1000 cause this clause will make them revoke mortgage offer. 

davidmcn

Pixxeh said:

davidmcn said:

It's not a "freehold apartment", it's a leasehold one (like almost all flats in England & Wales), but you'll also jointly own the freehold for the block with the other flats.

What exactly does this clause in your mortgage offer say, as it sounds unusual? Generally the valuation will assume a reasonably long lease, if for some reason they've assumed a 900+ year one then it should just be a question of the lender running the actual lease terms past their valuer. Though I suspect the reason your conveyancer hasn't raised it is because you've misunderstood the clause and your conveyancer hasn't.

The 'special condition' states "The Gth floor flat is subject to a lease which has 900 years still to run at a ground rent of £0 each year" 

Ground rent is £0, the seller is extending lease to 125 years because something about one of the others extending it to that, i am not entirely sure how it works. 

My conveyancer has picked up on every other little thing, so am shocked if she has missed this. I just am so worried i am going to be over £1000 cause this clause will make them revoke mortgage offer. 

Talk to your conveyancer then. As I said, it's probably just a matter of the lender running it past their valuer. No idea why they've assumed 900 years though unless someone along the line has told them that.