Leasehold/ share of freehold flat

zakizzy25

I am new here so hopefully I have posted this question to the right section 
I have a lifetime mortgage with Nationwide and I want to sell my house and downsize I have found Nationwide lending criteria very strict and have finally found a converted house into two flats
everything seemed to be progressing nicely until my solicitor read the mortgage offer
Nationwide not only want a charge on the leasehold but also want to put a charge on the share of the freehold 
My solicitor has said he’s never encountered this before and how could Nationwide expect to have a charge on something that’s not mine 
He is questioning it but at this moment it looks like I can’t move into this flat as I can’t satisfy their unfair criteria 
I look at this as if this flat only had a leasehold this would satisfy Nationwide and that would be that
the flat I want has a leasehold and share of the freehold and they want a charge on both the leasehold and freehold this doesn’t seem right 
can anyone help please I can’t ask the other freeholder to give permission to let Nationwide put a charge on his share of the freehold that’s totally ridiculous so how can I possibly solve this?

eddddy

Just to clarify - "share of freehold" is a bit of a misleading phrase. Typically, you will be doing the following:

1. Buying a leasehold flat
2. Becoming the joint owner of a freehold building. (The freehold building contains the 2 flats)

It could be that Nationwide have misunderstood what you are buying. It sounds like Nationwide think you are:

1. Buying a leasehold flat
2. Becoming the exclusive owner of the freehold building (i.e. Not the joint owner)

Because in that case Nationwide would want a charge on both the leasehold flat and the freehold building. Here's what Nationwide say:

5.8.2 If the borrower occupying one of the flats also owns the freehold, we will require our security to be:

• the freehold of the whole building subject to the long leases of the other flats; and 
• any leasehold interest the borrower will have in the flat the borrower is to occupy.

Link: https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/nationwide-building-society/

If that's what's happened - perhaps on your Nationwide application form you mis-described what you are buying, or somebody at Nationwide mis-read the application form.

Hopefully, once your solicitor tells Nationwide, it will all be sorted out. And/or you could try contacting Nationwide yourself to explain.

zakizzy25

Hi thank you for getting back to me 
I think you are right whoever over see my mortgage application 
thinks I have a leasehold and own the freehold outright 
that’s simply not the case it’s a share of the freehold 
I can’t possibly get the other freehold to sign his rights away to keep nationwide happy 
if they keep insisting then I will have to pull out of this move 
I don’t think I will ever do this again it’s to stressful I took this lifetime mortgage out because I didn’t have no choice or I would 
have lost my home due to divorce this lifetime mortgage though nationwide turns out that exactly what it is as their criteria for 
moving is so strict 
Question hope you can answer is it just the lifetime mortgage criteria that’s so rigid or is this the same “rules” of any mortgage from Nationwide