To not understand Freehold/Leasehold

[Mitmoo]

I'd appreciate advice on this one before I pay out for solicitors. It has been run before but got turned into a bunfight to MN pulled it. I need some proper advice so hopefully I'll get some of the knowledgeable posters recontributing again.

Mum's home is downstairs maisonette owned by her. She owns the land to the back and the front, the upstairs maisonette owner (landlord and one of the rudest vilest men I've ever come across) though is being perfectly charming right now because he wants something.

She is the freeholder, upstairs landlord/owner say they are also freeholders of the land the property stands on (not the front/back garden which is mum's). He wants mum to convert to a leasehold and is trying to say that the propery will be worth more if it converts.

I thought being a freeholder meant that you owned the land forever, not for a fixed term as with a leasehold so am I being thick and therefore unreasonable, in thinking there is no benefit and not being able to work out what possible benefit there could be?

Fortunately she won't sign anything without me giving it my seal of approval, she's never going to move from her current home, she's fairly poorly and this place suits her, no stairs etc. so it

The landlord says he is trying to raise funds from the maisonnette without selling it on.

Again very informative and helpful. Thanks.

Just to add, you can, in very rare circumstances, have two freehold flats on one plot. I understand it is more common in ceratin parts of the country (Isle of Wight for example), but the legal position is not ideal, and lenders don't like them.

In your Mum's case, there appears to be no need to do anything. If her neighbour is trying to remortgage, it may be that he is having problems with his mortgage - maybe they are unhappy with his title.

I seem to remember something, about the maisonnettes not being able to get mortgages on which is why they were ideal for landlords or people downsizing. That's just brought something about that back sitting.

I don't think I need to do anything now as Mum's not moving or selling up, but it's something to look into, to get clued up on what's happening.

I thnk they're both freeholders of the property the land is on, that's what is coming up on Postcode search at Land Registry anyway.

It is very unusual for a flat to be freehold (is it in Blackpool by any chance). Due to shared ownership of communal areas and party walls, ceilings etc flats are more often than not leasehold. However, the leaseholders can then set up a limited company that owns the freehold (all the shared bits etc), they can then agree a management fee between them and pay the money into an account to deal with any repair etc that need to be carried out to the shared bits.

Mortgage companies are often very reluctant to lend on freehold flats becuase the issue of the shared ownership is blurred - this is something which would come up in a survey and I have seen sales fall through due to a mortgage company refusing to lend and buyer's then getting clod feet so i would say in that regard the tranfer to a leasehold may make it more profitable.

Hope this makes sense!

From your last post, I think I might have an idea of what he is doing, (just another one of those thoughts thats popped into my head ).

If they are both freeholders, he could be wanting your mother to give up her part of the freehold to him and become a leaseholder instead, if she does this he will then be able to charge her ground rent, therefore raising funds from the maisonette without having to sell.

Thanks again to all. Would I be being unreasonable to tell him that nothing will change until we come to sell the maisonnette (when the awful day comes) and then we'll decide as it is not going to make any difference to Mum in her lifetime?

If he needs to raise money now that's his problem and not ours>

I think it's reasonable to tell him that nothing will change and yes, it's his problem if he needs to raise money. It may be useful for your Mum to clarify the position with the freehold, just the make sure she knows that she's doing the right thing.