Creating an additional 1 bedroom self contained flat in my leasehold maisonette

alikorkmaz123

Hi Guys,
It's my first post on this forum. So I have recently bought a 1 bedroom ground floor maisonette with a basement and a garden and it has its own entrance from street level with 157 years left on the lease. My plans are to convert basement into a 1 bedroom flat I would not be excavating down I would be lifting the ceiling joist up as the ceiling height in the ground floor is quite high and I would create another entrance for it from street level. I will also like to add a rear extension and side infill in the garden, this will mean I make the ground floor a 3 bed maisonette by itself for my self. My question is what would the freeholder say? Also would he request any money from me? Or would I automatically get 157 years lease on that basement flat as well? As the basement is stated on my lease. Just want to know what problems I could face before I get in contact with the freeholder? At the end of the day I am giving him another flat at my expense. 

Thanks in advance

davidmcn

I would fully expect the freeholder to want to share in whatever profit you're making from this plan.

Have you borne in mind that you'll also need planning permission to do this?

Do you have a mortgage? If so, this isn't something you're likely to be able to do on a standard residential mortgage.

AdrianC

You have precisely zero right in your lease to do anything other than simply reside in that space.

You are asking the freeholder to give you permission to modify their building (drastically!), and to change both your current lease from a one-bed-plus-basement flat into a three-bed flat and then to grant an additional lease for a basement flat (or allow you to sublease?) which you will then sell or rent... There is nothing in this for them at all, bar a load of hassle. They certainly aren't "getting a flat" out of it. Not until the leases expire.

Frankly, I'd be astonished if they agree. If they do, you can guarantee that it will involve a substantial charge and you paying for all of both sides of the legals.

It will be a LOT cheaper and less hassle for you to just sell this one-bed-plus-basement flat and move to a three-bed flat.

greatcrested

Who owns the freehold? If you are a joint freehold owner along with the owner of the other maisonnette, why not have a chat and see what he says? Bteween the two of you you can agree whatever you want.

But if he has any sense he'll want a cut of the profit!

If the freeholder is a 3rd party, then it's even more likely that his consent will be subject to considerable compensation.

Yes, you'll need planning consent, Building Regs certification, 2nd Council tax, etc

alikorkmaz123

Hi thanks for you replies,
Yep I have got an architect on board and he will be doing the drawing plans everything etc and we would be submitting a planning application. So you guys are saying the freeholder will likely not agree. Would it be a better option to ask to buy the freehold then? Best to buy my share or the full freehold? Because my share will be cheap as I have a 157 year lease but the maisonette on the first floor has a short lease of 57 years. There are only 2 maisonettes in the building FYI. Thanks again @AdrianC and @davidmcn

alikorkmaz123

@greatcrested I am currently not a joint freeholder, but I can ask the solicitor to start the process of buying a share of the freehold. If I have a share of the freehold does that give more of a right to do what I want with the basement and ground floor conversion? Or would there still be problems? What would be the best way to proceed, buy a share of the freehold (Cheap) or ask to buy the whole freehold (Expensive as the first floor maisonette only has 57 years remaining on the lease. 

Slithery

The first thing you need to do is speak to the current freeholder about your plans. If they are unwilling to give you permission or sell the freehold then there's nothing you can do about it.

greatcrested

If you buy a share of the freehold, you will still need the agreement of the other joint freeholder(s) who as explained will likely want a share of whatever uplift in value your flat benefits from.

If you buy the entire freehold (assuming the current freeholder agrees to sell) you will be able to do as you wish provided you do nothing to interfere with the rights of the leaseholder above you.

AdrianC

alikorkmaz123 said:

If I have a share of the freehold does that give more of a right to do what I want with the basement and ground floor conversion?

You as leaseholder still need to ask the freeholder's permission.

You, as joint freeholder, would get a say in whether or not to grant that permission.

You have no statutory right to buy part of the freehold.
You and your neighbour may have a statutory right to buy the entire freehold between you - where there are only two flats, both must be involved. Does your neighbour want to buy? If they've allowed their lease to shrink to just 57 years, can they afford to?

I doubt it will be as cheap as you think, with all the legal fees for both sides.

Seriously... if you want a three-bed flat, you will find it MUCH easier and cheaper to give up on this plan, sell your 1-bed flat, and buy a 3-bed.

alikorkmaz123

@AdrianC
Thank you that information, but can I not approach the freeholder to purchase the whole freehold and then obviously the other leaseholder will need to be notified and then if they don't want to buy, I can buy the whole freehold myself? Thanks 

AdrianC

Of course you can ask the freeholder if they'd like to sell.

That's not the same as them having to sell to you.