PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Leasehold to freehold - can you complete whilst freehold is being processed?

I’m in the final stages of selling my property, my house is currently a leasehold however my buyer couldn’t get a mortgage approved without a deed in variation in place which would of been at our cost, since then the buyer has agreed to pay the remaining cost to purchase the freehold outright.

Does anyone know if you can complete a sale of the house whilst this is being processed or do you have to wait until the freehold has been officially transferred?

Thanks 

John 

Comments

  • eddddy
    eddddy Posts: 16,143
    First Anniversary First Post Name Dropper
    Forumite

    It sounds like your buyer can't get a mortgage unless either, they get a deed of variation, or the house is freehold.

    It's a waste of money to get a deed of variation, if the buyer is then going to buy the freehold shortly afterwards.


    So, in simple terms, your buyer will be buying 2 things:
    • A leasehold house from you
    • A freehold from your freeholder
    ... and they will need to exchange contracts on both things on the same day, and then complete on both things on the same day.

    So exchange of contracts probably won't happen until the freeholder is ready to exchange contracts on the freehold sale.

Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards