Leasehold advice please!!!!

by Readers Question

3 years ago

Leasehold advice please!!!!

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Leasehold advice please!!!!

I own the leasehold of a top floor flat in a house converted into two flats, the other flat is now up for sale. Leasehold advice please

If I purchase it and become the leaseholder of both flats how do I go about purchasing the freehold?

How does owning both flats effect my statuary rights?

Does the freeholder have to sell the freehold to me?

Will purchasing the second flat add value to my ownership of the first flat?

All comments greatly appreciated!

Many thanks

Graham



Comments

Mark Alexander

3 years ago

Hi Graham

I recommend you to have a chat with our joint venture conveyancing partners - please see >>> http://www.property118.com/conveyancing/
.

Ian Ringrose

3 years ago

Firstly talk to a good BTL mortgage broker, as a lot of lender will not lend if you own more than 25% of the flats in a “block”.

Laura Delow

3 years ago

Hi. Ian is right in most cases except for example, Birmingham Midshires will lend on both flats (but can be 2 separate lenders) assuming you need a mortgage to buy the other flat & have a mortgage on the one you currently own BUT the Freehold (should the Freeholder agree to sell it to you - look at the Leasehold Valuation Tribunal website for your rights & process & how cost is arrived at; http://www.lease-advice.org/information/faqs/faq.asp?item=221) must be owned by ANOther otherwise lenders won't entertain it eg your sibling, parent, spouse, child if of age or a Ltd Co owned by much the same choice of people. Each lender varies but this is most common.
With regards will owning the second flat and/or Freehold add value to the first flat, only if you extend the lease from one that is getting low(ish) in years left to run.
Good luck
Laura

Colin Dartnell

3 years ago

It may be more appealing to an investor if you were selling both at the same time so could possibly add a bit of value in those circumstances but otherwise no gain.

The main advantage is that you control who the tenants are in both flats, then you don't have someone else's noisy tenants driving yours away. I would jump at buying it

Colin Dartnell

3 years ago

If you do have difficulty getting a loan on both flats, another option might be worth trying is to redeem the mortgage on the single flat and see if you can get a single mortgage on the whole building.

I have done it both ways and have not had a problem, but I have to say I haven't tried recently.

Good luck

David Mensah

3 years ago

Handelsbanken may also lend on both flats, but that will depend on a lot of details of the property.

Laura Delow

3 years ago

If you need a mortgage to buy upstairs, it's best to go the buy to let route & keep the 2 flats on separate title as this will i) mean cheaper buy to let interest rates & lower fees vs commercial on the whole building ii) allow you greater flexibility ie have one mortgage on one flat fixed & the other on a tracker and/or iii)over different mortgage terms iv) sell one flat if need the money & keep the other flat or v) sell both flats to one buyer & keep the Freehold & collect Ground Rent or vi) sell both flats & the freehold. The world is your oyster.

Graham Kogan

3 years ago

Thank you for all your responses to date! Very informative and helpful!

Could someone please confirm the process in my situation for purchasing the freehold. Is the collective enfranchisement route open to me even if I own both the flats?


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