URGENT HELP PLEASE!!! LEASEHOLD FLAT

[SUMMER789]

Hi all,
I really need some help, before I drive my self absolutely mad. I managed to save a small deposit around 10-15% and as a sole applicant with a standard paid job, my borrowing amount was not great. After looking at several flats, due not being able to afford a house I came across a leasehold flat that finally ticked my boxes. It had over 99+ lease, low service charges and low ground rent. My offer was accepted! I couldn't believe it. All was going ok untill I received the valuation report from the lender 'the property is for timber construction and has no masonry outer leaf"... the lenders therefore decided not to lend. Can someone please explain what the no masonry outer leaf means??. I contacted the seller who said he had no problem getting a mortgage and remortgaging. He also mentioned that he wasn't aware of the timber frame, nor was it mentioned to him in any surveys. He also asked me to get a second opinion regarding the valuation. I can go with a different lender but they would want a 15% deposit instead of the 10. I am confused. Is this a big risk? What would you do ? Should I approach a different lender through my broker, or is this property just not worth it ?? The fact that it's leasehold...timber frame construction and has no "masonry outer leaf"...whatever that means lol!

Do not buy a leasehold flat

They're bloody hard to resell years down the line

You will be forking out large sums yearly to maintain the property which you to pay no matter what

Find another property

Move further out if need be

It means there's no brickwork on the outside walls

There's a steel and concrete core, with wooden partition walls everywhere including the outer walls, which must then be clad in some sort of Grenfell style cladding

Run, don't walk away. Run.

The poor fucker trying to sell is saddled with an almighty white elephant

I live in a leasehold flat. I'd not be at all surprised if this was related to cladding/fire issues. Things have been found in my building which weren't highlighted when I bought simply because back in the day they weren't checking for all these things because Grenfell hadn't happened. This would explain why your seller didn't have it in his survey report. Every year the building is inspected and they're making it harder and harder to pass.

Some places nearly all flats are share of leasehold - London for example - it’s normal so if you can’t afford a house you have to accept it so I don’t see that part as a problem. The lease is a reasonable length of time and could be extended.

But if there is a cladding issue, that’s different and I would walk away from this one. Friends of ours have bought a couple of houses in the past at auction that were made of non standard construction, (one house is built of wood), the reason they do so is because they are cheap. They are cheap because people can’t get mortgages on them so they can only be sold to cash buyers. And this was pre Grenfell so now I’m sure it’s even harder to sell properties with wooden cladding due to the known fire risk.

Most flats are leasehold. The odd freehold flat that exists are un-mortgageable.

As PP say, it’s the construction that’s the issue.

Timber frame means that. No bricks. Non standard construction.

The current potential lender is unlikely to change their mind. Do you have a broker?

Sorry I meant leasehold share of freehold

It most likely is not covered in a highly flammable ‘Grenfell’ style cladding.
It’s most likely tile/slate hung, or rendered cement board.
In any case, this is your opportunity to move on and buy a standard build apartment. Don’t buy this guy’s problem off him.

Which lender does the seller have a mortgage with @SUMMER789

Leasehold isn’t ideal, but 1000s are in leasehold and I used to have a flat with no problems but you really need to do your research and go in with eyes wide open.

Ask who the management company is and research them, ask for copies of previous service charge billing and determine if any major works are due. Really forensically interrogate the fees.

You might also have issues selling in the future for the same reason.

All flats are leasehold and all have different leases, maintenance structures and payments, I have bought several flats and had no problem with any of them.
Not everyone can just buy a house, flats aren’t difficult to sell just because they’re flats, unless they have obvious structural issues like this one.

You should be reducing your offer, not trying to find the extra deposit. They are usually difficult to sell so the owner will probably know that it's overpriced and hoping for a fool to pay as much as possible. Use this to your advantage and be prepared to walk away if the seller won't agree.

As pp's have said it's of non standard construction. You really don't want to buy a flat with any additional issues because it will be increasingly difficult to sell. I am a conveyancer and wouldn't ever buy one myself.

The fact it is leasehold isn't really the issue, it sounds like it is non standard construction which IS a big issue. Walk away and find somethi g else.

Plenty of flats build in the 1900s - 1980s are built from normal materials like brick and concrete.