Purchase of the freehold of 2 flats

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    Purchase of the freehold of 2 flats

    Hi there , we are owners of a ground floor maisonette with a 98 years lease ( value 270 k ) and our upstairs neighbour is selling his flat with 68 years lease ( current value 205 k ) We are considering to buy his flat , so we can own the whole house , and then try to purchase the full freehold of the house.

    Which survey do we need to determine the cost of the full freehold ? Online calculator gives me figures which are feasible, can the current freehold ask more at their whim ?

    Can we force the sell as we would own 100% of premise ? And lastly do we have to wait to have own the upstairs flat for two year ?

    Looking for expert advice for a clear understanding ? Thank you

    #2
    If you use online calculators to work out the cost of a statutory lease extension for each flat and add the result together, that will give you a ball park figure as to the value of the freehold.

    If you own both flats you should be able to enfranchise the purchase of the freehold see-
    http://www.lease-advice.org/advice-g...tting-started/

    You should approach the freeholder to see if he is prepared to sell the freehold to you informally, if not you will have to follow the procedure in the link above, you don't have to wait two years.

    Comment


      #3
      Thank you

      I had a check and the flat upstair's freehold would be 17K and downstairs 3K , so about 20K for both , can the freeholder ask more than the figures calculated on a calculator or by a survey ?

      Also I found this which is alarming :

      "But, even if the tenant satisfies the above criteria, they will not be a qualifying tenant if any of the following cases apply:

      the tenant owns more than two flats in the building. This is either jointly with others or solely in their own name. Please note where this applies these flats will be discounted from the two-thirds"

      Could somebody explain ? We would own both maisonette ( 100 % of the house )

      Comment


        #4
        The freeholder can ask whatever he likes for the freehold but ultimately you negotiate and if you can't agree you apply to the FTT to determine the price.

        As there are only two flats I don't see how you can own more than two flats.

        Asking the FH if he is willing to sell and at what price is the starting point.

        Comment


          #5
          GOOD AFTERNOON , THIS IS AN URGENT APPEAL TO SOME ADVICE :

          We ( me and partner ) have made an offer on the upstairs flat ( we on the downstairs , leasehold 97 years ) , it was accepted , we asked the freeholder about purchasing the whole freehold of both flats , accepted for 20 000 both.

          We got our solicitors ( pretty unhelpfull ) instructed them to buy the property , the free hold and extend the year on the lease of purchased flat to above 80 years on completion..
          Our broker made an application with Birmingham Midshire for a Buy to let Mortgage for upstairs flat , we was accepted , we paid our broker and paid the valuations , the searches with solicitors ect... all going well until !

          BM lenders turned around and said they can lend on a Leasehold flat , of which we are also the freeholder on completion . They cannot lend on a leasehold flat of which we are share of freehold on completion. They basically messed up and misslead us for 4 months

          So we are trying a new approach that will satisfy their criteria : ( see below )

          But we are unsure as to what we need to do about the purchase of the freehold, and what to instruct our unresourceful solicitors. either get a third party ( mom ) to buy it , as we can't buy it and be the leaseholders apparently. that way the years on the up flat are increase for free and never have issues when doing building work .

          Or can we just be the freeholders and not have a lease on any of the flats ? is that possible ?

          If they had agreed , was it even possible to be the freeholders and the leaseholders in the same time anyways ?

          Here are there criteria , what would you do ? what is the best solution ?

          Tenure is leasehold and the applicant does not own the freehold or share of freehold:
          • The conveyancer will ensure the lease meets our standard requirements.

          Tenure is leasehold and the applicant owns / will own on completion the freehold of the whole building
          • Our charge must be registered on the freehold of the whole building and the leasehold interest of the unit. The conveyancer will ensure the lease meets our standard requirements
          • The mortgage along with the freehold and leasehold titles must be in the same name. It is not acceptable to hold the freehold in a Ltd company with the customer as sole director, majority shareholder or with any family member
          • It is only acceptable for the customer to own one unit in the whole building, including any new applications

          Tenure is leasehold and the applicant owns / will own on completion a share of the freehold of the whole building
          • Our charge must be registered on the leasehold interest only. The conveyancer will ensure the lease meets our standard requirements
          • It is only acceptable for the customer to own one unit in the whole building, including any new applications

          Tenure is freehold
          • The security will be registered on the freehold of the whole building and be processed as a freehold house
          • The applicant must own the freehold personally in their own name
          • The mortgage and freehold title must be in the same name. It is not acceptable to hold the freehold in a Ltd Company with the customer as sole director, majority shareholder or with any family member
          • All units other than the freehold unit on which we’re lending must be subject to long leases (minimum 70 years)

          Comment

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