50/50 freehold - buying a property - pluses, pitfalls and ALL Advice please

Kestrelandy

Hello,

My partner lives a way away and travels 60 miles to her new work which is still 15 miles from me.

We therefore are looking for a small house near where she works as a second home for a couple of years till we trade in everything for something we want.

We have found "flat", part of an old hall which need a bit of work but situationally would be good.

However, its one of two flats in this building, and would come with a 50/50 freehold, split between the two flats. Oddly there is a third flat in the building, which is not mentioned in any of the sharing info. As the two 50/50 flats are for sale, we have no idea who may buy the other side or when.

To buy this I shall have to borrow against my own house.

I need to know so many things that I don't know what i need to know! Help…

Could you prompt me with questions or advise me about such a situation. There will be no leaseholds, they are all being given up for this 50/50 freehold split.

what could go right - what could go wrong???

Thanks in advance…

amnblog

You would expect each flat to have a separate lease. The Freehold ownership is a separate issue and can be 50/50 between two flat owners.

You cannot sell half a freehold.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6661240/50-50-freehold-buying-a-property-pluses-pitfalls-and-all-advice-please

It wouldnt be a totally unheard of situation but would be a very unusual one. Share of freehold, despite its name, normally means the unit is a leasehold but you are buying both the lease and a share of the freehold or a a share of the freeholder (ie the company that owns the freehold).

Its certainly possible for a building to be a mix of share of freehold and leasehold, our last place was in a development of 200 units of which circa 150 each owned 1 share of the freeholder and the remaining 50 flats hadn't been involved in the buyout so were pure leasehold.

Why are you borrowing against your home rather than against the flat you are buying?

Firstly I'd clarify the exact legal position of all three units. Secondly would want to know if any agreements already exist on how the shared freehold works and if they would survive the sale… if the freeholder is a company then it can be the articles of association that define a lot of things so they would survive the sale. If it's a gentleman's agreement it almost certainly wont.

The main concern will be on how you agree matters given there are just two freeholders with 50% share each. On the plus side you can't simply be out voted on everything like if there had been 3 freeholders and resolutions required a simple majority to be passed.