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Should we walk away from this house? Freehold/lease issue.

5 replies

dottypencilcase · 06/04/2022 11:39

Found a property we love- it's not perfect- I've compromised on the fact it's a maisonette and not a house, the garden being accessed via the side of the house instead of directly, etc. but is so roomy and I can see us there for a long time. Here's the issue, it's a freehold maisonette and we'd need a mortgage. Our specialist lender has said they'll only lend on the property once the freehold has been changed to leasehold and the leasehold registered with land registry. I looked this up online and new registrations are currently taking 8-11 months. Time we cannot afford to waste (my husband is a contractor and we don't know how long his current contract will last- it's been renewed 5 times so far for context). If he takes another job at a new rate during the wait for land registry to register the property, that will impact our affordability for the property too. The location of the property works for us and that coupled with the fact that there's nothing currently on the market makes me think we should hold onto this property but another side of me thinks it's too messy and we should avoid spending money on instructing solicitors- conveyancings fees, etc. and getting a survey done.

Wwyd? Should we wait it out and see what happens in the hope that we'll move in eventually or should be try on looking?

OP posts:
dottypencilcase · 06/04/2022 11:40

Or should we carry on looking?**

OP posts:
Panicmode1 · 06/04/2022 11:49

This makes no sense to me....why would the lender want it to be leasehold? A freehold is a better investment.

onlychildhamster · 06/04/2022 11:56

@Panicmode1 a flat has shared communal areas and the external facade also has to be maintained jointly with the other flat owners. Without a lease agreement, it is not clear who is going to maintain these parts. Freehold is different from share of freehold which is where all the flat owners jointly own the freehold (usually a company is set up with all the flat owners as shareholders) so the company is the freeholder. Share of freehold however is still a leasehold, just that you have more control over costs as a shareholder.

AmberLynn1536 · 06/04/2022 12:13

Have you posted about this flat before? Sounds familiar. The situation sounds a ball ache and what will you do if suddenly after 11 months the mortgage lenders decide you can’t afford it anyway? I would have to be totally in love with a property to wait that length of time, the lease could only be the start of problems in the buying process so you could be waiting well over a year, only you can decide if the property is worth the wait and risk.

Panicmode1 · 06/04/2022 12:17

Thank you @onlychildhamster - I am a surveyor, so do understand the distinctions Wink. The OP makes no mention of communal areas - I do think that if there is no clarity on repairing obligations, that would need a lease/legal framework, but the purchaser (and your lender) would not want your freehold downgraded to a leasehold....that was what I was questioning.

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