Freehold maisonette above a shop – mortgage nightmare?Make Text Bigger
I’m hoping that the well informed members of the forum will be able to help me with my problem below.
I unfortunately bought a freehold maisonette that resides over a flower shop below just over 2 years ago.
I own the freehold to the whole building with the shop owner owning a long lease below. The shop owner pays me £10 worth of ground rent per annum, there is no service charge as all costs are shared equally as they arise (including insurance). I was not advised by the mortgage broker or solicitor I used that this may create a problem for me in the future.
I’m in the process of remortgaging the property, but I am having a lot of trouble. I’ve been told that Barclays and Natwest usually take freehold maisonettes, but not with commercial units below. I’m currently with the Halifax but I do not want to stay on the Halifax renewal rates as the rates are not competitive at all.
Does anyone own a similar property and has managed to get a mortgage with a different lender?
I’m concerned that this will affect the resale value as if there is only one lender who will lend on these types of properties then the only purchaser could either be a cash buyer or only with a mortgage through the Halifax (unless this isn’t the case?!?).
Is there a cost effective way of selling the freehold to somebody else and I just have a long lease, as would be the norm? If this was achievable then it wouldn’t limit lending options as its leasehold and not freehold. Do I have any other options?
Thanking you in advance,
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