Buying a house with a freehold and 2 leases - HELP

Aldunne

My partner and I are trying to buy a family home. We have sold our property and are planning to port our mortgage. The house we want has three titles arranged as follows:

Freehold Title (owned by the sellers’ Management Company)

Maisonette Lease (owned by the seller)

Basement Flat Lease (owned by the seller and his wife)

We believed they were planning to merge the titles before we purchased the property - this is now looking unlikely and is holding up our chain. If we were to buy the 3 titles as they are, will we be able to merge the titles directly after we complete? or can they surrender the deeds on completion? Does this mean the property will become one freehold? 

Any advice most appreciated 

user1977

In theory you can probably merge them post-completion (or not bother merging them at all), but the question is more what does your lender want? Isn't your solicitor giving you any advice?

eddddy

It sounds like you're buying with a standard residential mortgage.

I suspect your mortgage lender will want you to have just one freehold title (with no leases) - but your solicitor can probably arrange that as part of the conveyancing. But make sure you explain in advance to your solicitor what you need, and get an inclusive fixed quote.  Some 'conveyor belt' conveyancing solicitors wouldn't take this on.


But have you discussed the property with your mortgage lender and/or has the lenders valuer seen the property?

Is the property laid out as 2 flats? With 2 kitchens? Will it need conversion work to turn it into one house?

If so, it's unlikely you'd get a residential mortgage for it.

But if it's already converted into one house, that's probably OK,

canaldumidi

Yes from a legal perspective it'snot really a problem. Seller merges before Conpletion or you merge after Completion,or leave all 3 titles in place.

The issue is going to be whether your mortgage lender is willing to lend and if so on what basis.