Can a flat management company obtain a mortgage?

Publius

I have a bit of an odd question I'm hoping the good folks here can help with with.

I'm a director of a flat management company - a while back we collectively obtained the right to self manage our block of flats and collectively (through a limited company) own the freehold.

The owner of some adjacent vacant land has approached us asking if we wanted to purchase their freehold. Historically this land used to belong to our building but for some reason lost to time was not obtained. Obviously we would like to do so.

Clearly valuations need to be gathered etc, but the question is, are there any lenders who will allow our flat company to get a mortgage to purchase this land? It seems unfair to hit the current leaseholders for the bill given the land will have benefits over decades and some way to spread the cost over leaseholders as come and go over a decade seems fair. We would pay back the mortgage by raising a charge against leaseholders into the future and secure it against the current block freehold.

Are there any lenders who can do this? Where do I even start?

[Deleted User]

What sre you going to do with the land? Add it to the existing title? Or develop it? 

Publius

Deleted_User said:

What sre you going to do with the land? Add it to the existing title? Or develop it? 

Add it to the existing title. Potentially some low value development such as storage and additional garden. The size and shape of the land wouldn't suit any significant development - hopefully this will mean the price is reasonable too.

[Deleted User]

So who is paying the cost for the leaseholders to tell their respective lenders that the title is changing?  

If its getting added to the title of the existing freehold then you would presumably be taking a mortgage on the existing building to purchase it? 

As the freeholders are also leaseholders then im sure you could do something with a lender lending to a btl ltd company with personal guarantees and with a charge taken over your leasehold properties 

Not something i have done before but it doesnt sound impossible as long as you can put the existing building up as security and everyone who owns the freehold is happy to offer personal guarantee.  

It wouldn't be mainstream for sure but where there is a will there is a way with specialist lenders