acquiring freehold

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    acquiring freehold

    hello, my son in law has a flat ,comprising the upper floor of a building with one other flat below. his ex father in law owns the freehold, but has never charged any ground rent, or become involved in repairs, indeed,he didn't realise he was the freeholder still when I rang him!
    my sil now wants to sell flat, and we are wondering if it's worth acquiring the freehold ( he doesn't want money for it),or whether it will be an impediment to prospective lenders and therefore buyers. There is a long lease on the flats.

    #2
    The current arrangement is likely to impede the sale of the property.

    The buyers solicitor will want lots of info from the current FH, like who insures the building, are the ground rent and service charge up to date, who is responsible for repairs, are any repairs planned etc. Sounds like the current FH isn’t meeting any of his current obligations if he doesn’t even know he owns it!

    Generally owning the FH is a good thing as it gives you control over the building although all the terms in the leases still apply, and there are a lot of legal obligations stipulated in the leases as to who is responsible for what, the leases are a good place to start, read both thoroughly.

    There will be some value in the FH, Ground rent income and future lease extensions etc so if the FH is giving it away. You can’t normally own the lease and the FH in the same name, so it will have to be hold in joint names or owned in a company.

    It might be easier to sell the flat leasehold, with the offer of the FH separately.



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