Bankrupt freeholder! Should I proceed with the sale?

[mouldyironingboard]

I've found a converted flat which I want to buy. Unfortunately, my solicitor says that the freehold company is in administration and takes no part in maintaining the flats. The estate agent says it isn't a problem and i can insure the building myself but I'm not convinced. Would this affect my mortgage application?

Should I look for another property as this all sounds like too much hassle?

Won't your solicitor tell you?

The mortgage company will require someone to insure the building, you or the freeholder. Do they have existing cover? If you arranged new cover you would have to do it on behalf of all the flats and ensure the other flats reimbursed you the cost.

However maintenance of the building woudl be more of an issue I'd have thought - who's going to sort out the roof when it blows off etc?

Ignore the estate agent - they'll tell you anything to get a sale! As Collab says talk to your solicitor.

If it were me, I would walk away. Yes it will affect your mortgage application. IMO absolutely too much hassle.

Solicitor hasn't given a definite answer as he wants to see what paperwork the sellers can provide in terms of the maintenance and insurance.

The estate agent has just said it's better to have an absent freeholder as you can do all the maintenance yourselves! I'm still laughing about this statement.

I'm not going ahead with the sale.