Responsibilities as the freeholder.

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    Responsibilities as the freeholder.

    Can anyone advise me.

    Am interested in putting an offer in on a maisonette. The property is a victorian conversion into 3 flats made up of the ground floor and basement, a first floor flat and the second and third floor maisonette whichi am interested in.

    Initially i was led to believe by the estate agent that the maisonette came with a share of the freehold or whatever the technical term is, however i have now discovered that i would actually be the freeholder of the whole building.

    My concern is is this going to be a major responsibility and headache with red tape. The current freeholder assures me it isn't, he says if anything needs doing he basically knocks on the other two leaseholders doors, tells them about it, gets some quotes etc, informs the others, collects their money and gets the work done.

    He doesnt collect any ground rent, which is negligible anyway, or collect any service charge apart from insurance, and just asks for money as and when something needs doing. The ground floor tenant maintains the garden and each flat looks after the cleaning etc of their communal part and stairs.

    Is it really this simple and if i buy the property should i keep to this arrangement or is there a lot more red tape and paperwork involved.

    #2
    Aah no this is a problem. As there are 3 flats the freehold cannot be sold ( even if you are being sold a flat on a lease, and the freehold) without first offering the freehold to all current leaseholders. The exception is if the freeholder is resident. If you are only getting the freehold then you may have a problem raising a mortgage and if you can one at competitive rates.

    Most importantly is that the freeholder is responsibility for the entire building unless the leases pass on responsibility and for shared cots allow full recovery of all costs.

    Before proceeding you must have your solicitor look at all the leases to ensure that this is the case. Moreover the door knocking ad hoc way of doing this is a disaster waiting to happen, As you can see reading the stickies at the top of the long leasehold page, demanding monies and rent, as well as the legal obligations that you have, are quite extensive and detailed.

    That said it can be an opportunity particularity if the seller is unaware that the leases are getting under 90 years in length or their is cope for conversion or addition which can produce more income for you.
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

    Comment


      #3
      Thanks for your reply.

      The 3 properties are on leases and the one i am interested in also happens to own the freehold of the building as well and yes they are residents.

      As a lessee and freeholder can i then just extend my own lease of the maisonette as and when i wish?

      Both the other leases are actually well below 80 years so yes there could be some (considerable ) gain when either or both needs to be extended. Would this not have been factored in though when the property was valued. I get the impression when asking the estate agent for more details of how the "freehold" part was valued and she just stared at me blankly. i got the impression that a lot of residential valuers dont seem to know how to accurately value these things.

      Comment


        #4
        some ea are not very bright or well informed burgers or flats its all about the sale. keep quiet agree a price, have our lawyer check the leases as said, as you may have stumbled on a bargain. yes you can extend your lease on completion to a longer period.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment

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