Freehold House, Leasehold Garage

jon95

Hi.

We have had an offer accepted on a house and going through all the legal bits. We lvoe the house and are trying to push it through at all costs, however we found an issue when we realised that the adjoined garage (which is used by us) is a leasehold, after a lot of back and forth with solicitors we have realised that it is currently owned by the neighbour who lives in a flat over ground situated partially on top of our garage. Before realising it was a leasehold it was always our intention to turn it into a kitchen, the neighbour is fine with this (in principle) as long as we meet regs and take out all the insurances necessary.

He has said he is prepared to sell the lease onto us as he has no use for the garage (he has another one), however it doesn't mean much given that the terms of the lease say that the garage has to remain a garage. What are the possibilities in converting the leasehold garage into a freehold, for context, the lease on the garage is 999 years.

Any help greatly appreciated.

user1977

You don't need to convert it into freehold in order to vary the covenant about the use, if that's the only problem?

Would be rather fiddly to do so anyway, as your freehold would then have to be subject to the leasehold interest of the neighbour upstairs (are they already occupying under a lease or do they simply own the freehold subject to the leasehold garage?).

jon95

Oh okay, so we can change use without owning it as a freehold? The nieghbour currently owns a freehold property above the garage in question. I presume he owns it because of the land it sits on.

user1977

jon95 said:

The neighbour currently owns a freehold property above the garage in question. I presume he owns it because of the land it sits on.

He owns the freehold for both the garage and the flat upstairs. If you wanted the freehold instead, you'd need to buy it from him (and give him back a lease of the flat).

jon95

We have received nformation through saying that the garage is a leasehold, I have spoken to him and he doesn't own it, the people who lived in the house previously were planning to convert it. In his words he owns the leasehold but has never paid anything for it, it has a seperate title plan - all very confusing.

canaldumidi

If the neighbour owns the freehold ofthe garage and you were toown the lease, you could mutually agree to vaty the lease to permit the conversion.

If you had a mortgage, your lender would have to agree too.

Have you explored the Planning aspects? You might not get planning consent if the planners considered a garage /off-road parking was required?

I assume utilities are straight forward?

The risk is that you buy and then don't get Planning consent, or the neighbour changes their mind. If so, how would you feel about the property?

canaldumidi

jon95 said:

We have received nformation through saying that the garage is a leasehold, I have spoken to him and he doesn't own it,

???? who? The neighbour or your seller?7

Doesnot own what? The leasehold garage? So who owns the lease?

 the people who lived in the house previously were planning to convert it. In his words he owns the leasehold but has never paid anything for it, it has a seperate title plan - all very confusing.

Who is 'he'? You need to beclearer.

If in any dobt I suggest youpay £3 x 3 to the Land Registry and download

The freehold for your house

The freehold forthe garage/flat

The leasehold forthe garage

and check who owns what. Also, how long is the lease?

Oooh! Land Registry have updated their property search pages....!

user1977

jon95 said:

In his words he owns the leasehold but has never paid anything for it, it has a seperate title plan 

I'm guessing he means it was just bundled into the overall price for the house, rather than bought as a separate transaction?

hazyjo

Actually betting the neighbour's property is in fact a leasehold flat. Definitely check the Land Registry.

jon95

Sorry, when I say 'he' I meant the neighbour. According to our solicitor the neighbour owns the leasehold, and presumably the freehold. We do have a mutual agreement and he is happy for us to proceed, but I am keen to have something official in case he sells the property. I have spoken to the planners and they don't see any massive issues regarding the conversion, however when it comes to it, things can change.

I think I will get the land registry documents for peace of mind - i believe it is a 999 year lease.

canaldumidi

jon95 said:

Sorry, when I say 'he' I meant the neighbour. According to our solicitor the neighbour owns the leasehold, and presumably the freehold. We do have a mutual agreement and he is happy for us to proceed, ....

then you'd be mad to put a kitchen in if you don't own it! Will the neighbour

a) sell you the lease and

b) vary the lease to permit a kitchen?

and presumably the freehold.

well a) if he does not own the freehold, who does? Because the freeholder would have to vary the lease to permit the kitchen.

Again I say, buy the Titles and see who owns what.