Freehold flat

[Balloondog]

Our mortgage broker called to say that our mortgage application has been submitted to NatWest and is now in question and unlikely to go through. The valuation 'found' that the flat is freehold - something I'd been up front about since the initial enquiry as I thought it might cause an issue so I'm pretty ticked off. NatWest are also claiming the property requires significant works to live in (which I don't believe it does beyond a rewire) and the outbuildings ownership is confusing - it's not, the flat comes with a stone shed, coal store and detached garage, all of which the agent was clear about. Now, I'm not at all clear what the situation is re the freehold and whether there is a leasehold arrangement with the other flat or whether they would be willing to set one up - I've been badgering the agent for more information since the viewing and they've been stonewalling.

I'm not sure what, if anything, I can try to do to resolve this or whether we have to walk away. It's our dream property and I'm reluctant to give up easily. Has anyone encountered similar in the past?

Hard one!
The sellers, do they have a mortgage on it currently?

No, no mortgage. It's a probate sale and the 'children' who are selling the property are in their 50s/60s and grew up there so it's not changed hands for a long time!
I'm tempted to approach the upstairs flat owners to ask if they'd consider setting up a reciprocal leasehold agreement but a) it's not clear what the current arrangement/status is, b) I'd really prefer the seller to sort this c) it feels a bit pushy, like it's not my place to do this... yet...

Get a mortgage broker who will advise a better lender for your situation. We have one and he is getting us a different lender for the doer upper we are buying than the one bed flat we are releasing equity from by remortgaging. He has been amazing. Happy to share his deets if you want

Ask your conveyancer what the set up is and what can be done.

Estate agents are not exactly renowned for their legal knowledge.

Agree with MinnieMountain. You need legal advice to unravel this. Lenders generally do not lend on freehold flats. Your EA is not the person to sort this out.

Or mortgage broker

Thanks all, having slept on it that's exactly what I'm attempting to do - just waiting for the solicitor to call me back. I appreciate your thoughts and will update in case it's of use to anyone else in the future.

Why won't building societies give mortgages on freehold flats?

Because there’s no enforceable obligation for whoever owns the rest of the building to maintain it/pay their share of maintenance @sunshinesupermum

Well it just gets better and better... the previous owners had lost the title deed and so the already tricky freehold is now registered as a possessive freehold not an absolute one 😩 I suspect we will end up walking away from this but it's gutting...

Don’t walk- run.

Thanks @MinnieMountain, that's first thing about this whole mess that's made me smile 😁

Happy to help OP.
I can’t say that to clients in real life though I sometimes wish I could.

It sounds like the current owners need to get their house in order before they sell. This is on them.

Can’t the upstairs flat have a flying freehold? (Admittedly I’m not very knowledgeable about freeholds but lots of up-and-under terraces round here work on that basis).