Freehold Flat

[kaiser78]

Has anyone ever bought a freehold flat, as opposed to leasehold ? If so did you have any problems with the purchase, mortgage or selling ?

We are looking at flats currently and have seen a flat on a freehold basis, but very few places offer mortgages on freehold flat basis.

Any experiences would be interested.

[doodab]

Ms doodab's experience is that most lenders won't touch it and it's easier to give up and find somewhere else. As I understand it that's because you won't necessarily have any sort of legal framework regarding responsibility for common areas and shared walls and so on, so if anything complex needs doing it can quickly become an expensive nightmare.

[Paddy]

Has anyone ever bought a freehold flat, as opposed to leasehold ? If so did you have any problems with the purchase, mortgage or selling ?

We are looking at flats currently and have seen a flat on a freehold basis, but very few places offer mortgages on freehold flat basis.

Any experiences would be interested.

I would be surprised if the flat is freehold. It is more likely to be leasehold with all the flat owners owning the freehold jointly usually under a limited company. There are more problems with Leaseholds where the freeholder is a separate landlord so I am surprised if it is difficult to get a mortgage for a "freehold" flat.

Many flat owners are under the misapprehension that the landlord is responsible for repairs etc. In fact the landlord will charge the leaseholders for repairs and make a huge profit on top.

The whole law on leasehold and freehold together with the L&T act is so out of date. Landlords (not short lets etc) have rights like it is the Middle Ages.

[kaiser78]

I would be surprised if the flat is freehold. It is more likely to be leasehold with all the flat owners owning the freehold jointly usually under a limited company. There are more problems with Leaseholds where the freeholder is a separate landlord so I am surprised if it is difficult to get a mortgage for a "freehold" flat.

Many flat owners are under the misapprehension that the landlord is responsible for repairs etc. In fact the landlord will charge the leaseholders for repairs and make a huge profit on top.

The whole law on leasehold and freehold together with the L&T act is so out of date. Landlords (not short lets etc) have rights like it is the Middle Ages.

They do exist although not as common as freeholding flat - the flat we have seen is essentially a house that has been split into 2 flats each with the own freehold and covered by covenant. As per other post, sounds a bit risky so we think we will find a flat with leasehold.

[Paddy]

Ms doodab's experience is that most lenders won't touch it and it's easier to give up and find somewhere else. As I understand it that's because you won't necessarily have any sort of legal framework regarding responsibility for common areas and shared walls and so on, so if anything complex needs doing it can quickly become an expensive nightmare.

"shared walls" (party walls) there is already an act of parliment to cover that just as in a terrace house.

"anything complex needs doing it can quickly become an expensive nightmare"

The same would apply to a Leasehold except the landlord and his management company would add a big chunky profit on top.

[doodab]

I would be surprised if the flat is freehold. It is more likely to be leasehold with all the flat owners owning the freehold jointly usually under a limited company.

There are such things as true freehold flats with no lease or superior landlord as well. They are rare though.

There are more problems with Leaseholds where the freeholder is a separate landlord so I am surprised if it is difficult to get a mortgage for a "freehold" flat.

Many flat owners are under the misapprehension that the landlord is responsible for repairs etc. In fact the landlord will charge the leaseholders for repairs and make a huge profit on top.

That's not strictly true. The ones that are managed by a third party generally just send you bills, with receipts, and occasionally requests for big wodges of cash for major works. If you feel you are being screwed you can dispute the charges at a tribunal and they will have to justify everything they are charging for, with the tribunal deciding what is acceptable and the decision being binding. They make their money on the lease extensions, not the service charges.

On the other hand places where you own or are trying to buy a share of the freehold often suffer from all sorts of problems due to the ineptitude and egos of your fellow leaseholders not to mention frequent delays in getting essential repairs made due to those who query every item of expenditure and don't or won't pay their share of costs and so on. It's the bane of my ******* life and I don't even own the places in question.

[DimPrawn]

Sounds like a nightmare. Flats, leaseholds, shared things, etc.

My advice would be to buy a massive detached house set in 5 acres of land instead. A lot less hassle.

[AtW]

My advice would be to buy a massive detached house set in 5 acres of land instead.

WIS

[Paddy]

If you feel you are being screwed you can dispute the charges at a tribunal and they will have to justify everything they are charging for, with the tribunal deciding what is acceptable and the decision being binding. They make their money on the lease extensions, not the service charges.

.

Just had a tribunal for that in May that lasted two days! They don’t have to justify everything they are charging for and the LVT have a very narrow remit. Out of a £10k bill, £250 was removed. The main criteria it for charges must be outlined in the Lease but basically the Landlord can screw for anything.

The management companies make a fortune and most of them have offshore companies. They uplift costs of repairs and get kickbacks from the insurance companies and builders.

Eg: Cost of works = £10,000
Uplift for costs £2,000
Admin charges for works £2,000
H&S advice £500
Inspecting works £2,500
Kick back from builder £2000.

[SueEllen]

Just had a tribunal for that in May that lasted two days! They don’t have to justify everything they are charging for and the LVT have a very narrow remit. Out of a £10k bill, £250 was removed. The main criteria it for charges must be outlined in the Lease but basically the Landlord can screw for anything.

If there are enough of you in the building then you should see if you can arrange to buy the freeholder out.

Though this means you could end up with endless squabbles ending up with threats to take leaseholders who are also directors of the management company to court, or one person doing everything .........