Problem with freehold - any ideas?

scottmcgarvey

chappers wrote: »

...Your solicitor sounds like a complete ar5e, how old is your mother now you say she was 70 when she took out the mortgage.How much does he think it's going to cost to find life insurance for a 70+ year old woman. Just get her to rwrite awill leaving the property to whoever she wants, if she was given amortgage at aged 70 I assume she has some sort of income/cash stashed away. when the time comes the 22k loan can just be settled from her estate and if it meeans selling the flat then you just grant another lease to the buyer.

No, she has no savings or money stashed away. Quite the opposite! She got the mortgage secured on her flat (or rather the freehold for both then) - to borrow £25k. She owed approx £12k on store cards (I didn't know anything about this at the time). She paid off £3k, and spent the remaining £10k (she likes spending money - but fair enough - her equity).

None of the family are worried about her money from our point of view - so she has always been encouraged to "not worry about us" - I'm the youngest and I'm 38!

Get the point on another lease being granted. Any ideas then, why my solicitor thinks this is a problem? Or am I being a bit thick, and perhaps she is angling for something I don't need? :huh:

Doozergirl

I really think you should contact the Leasehold Advisory Service, with a copy of your lease to hand and ask them directly if there is a problem with the other flat (forget it being your mum) owning the freehold and not having a lease. 020 7374 5380 - call them - it's free - a darn sight cheaper than your solicitor, no doubt!

You don't have to set an amount for maintenance, you can just split the bills 50/50 with upstairs if you want to, as long that is in the lease.

Maybe she does have some kind of point on the leasehold/freehold thing but all these comments about having to pay a set amount of money in service charge and having life insurance just sounds like she's tying herself in knots

chappers

the only slight issue I could see is that if someone bought the other flat and your mother then died as the freeholder then there might be some problem.
But whatever happens if she dies or defaults basically the whole lot goes to whoever takes possession ether the bank or her heirs if the property gets sold either way then someone will still own the freehold and a lease will be granted on the flat.
Who gave her such a long mortgage at the age of 70 with no income.

scottmcgarvey

Thanks Doozergirl - will give them a call, and see what they make of it...

The lease specifies that the provision is 50% with upstairs. It's been recommended that a surveyor comes out and works out a figure - if not used then goes into a "reserve fund". If over £500 pa (for 100%) then she has to 'consult' with the new leaseholder as to the works required. Another reason for making it £250 or less p.a. is that it doesn't then have to go on the HIP apparently...

chappers - thanks. I think possibly that is what the solicitor is thinking of. Her flat is worth around £115k, mortgage £22k - was the Halifax who lent her the money - she only has her State pension and a couple of little pensions. Was amazed when I found out it was for 35 years.

I think all down to "what would happen to the freehold if...?" is the sticking point with my solicitor. I have put them on the spot and said to them I'd rather get it sorted now then, then find a buyer and them be put off, then have to somehow get it sorted - get a lease/plans drawn up for the upstairs flat, and beg for compliance from her lender. I asked her exactly what I should do - "am I only delaying the inevitable?" being as she thinks I have a problem with it.

Will be a week tomorrow without hearing anything (we correspond by email).

chappers

Not sure there is much you can do about the freehold now other than set up a management company.

Richard_Webster

I don't understand why setting up a management company is considered the remedy here. If the lease of the other flat is OK and does provide for collecting a proportion of the cost of maintenance etc then the identity of the freeholder - mother in law or company owned by mother in law is quite irrelevant.

If the lease does not contain appropriate provisions it will need amending and setting up a management company will not suddenly provide new powers etc unless the lease has been altered.

chappers

I could see a slight problem if there was nothing official set up and the maintenance responsibility was with the old lady and she died then who takes on responsibility for the maintenance.
I know it's stupid but people feel more confident when there is the "structure" of a company there rather than just an "old lady upstairs" who rings the plumber.