What identifies a flat with share of freehold in paperwork?
Discussion
If you buy a flat with a share of the freehold, what would you expect to see in teh paperwork?
Should the lease mention this?
I'm looking to buy a flat that is advertised with a share of the freehold, but pays ground rent and has a 67 year lease. I've seen a few like this, so is it just a formality to pay a solicitor to mark up the lease as 999 years or do I have to pay the freehold company a fee like usual lease extensions?
I want to know what's usual beofre instructing a solicitor and offering on it.
Should the lease mention this?
I'm looking to buy a flat that is advertised with a share of the freehold, but pays ground rent and has a 67 year lease. I've seen a few like this, so is it just a formality to pay a solicitor to mark up the lease as 999 years or do I have to pay the freehold company a fee like usual lease extensions?
I want to know what's usual beofre instructing a solicitor and offering on it.
If you are the freeholder (or own share of the freehold) then you can award yourself a lease, right? I'm not a legal bod, but have bought a property with separate building (lease) and freehold before. Yep i know it sounds weird, but the solicitor combined the paperwork for me so it's all cushty now.
If you don't trust the estate agent's particulars (surely you trust them absolutely!?!?) then you can go to the land registry web site to see if there is a share of freehold as well as the lease title. As you note, if you are a shareholder in the freehold company or entity then it is a formality to instruct your solicitor to extend the lease. However, you should consult an accountant about how you account for this because effectively you gain a benefit in terms of the increase in the price of the property but you presumably won't want to be paying the freehold company (of which you are a shareholder) the premium.
Bear in mind that you will pay a few hundred pounds for your solicitor to undertake the lease extension.
However, at 67 years for the flat that you mention, you may find that some lenders are reluctant to lend on such a short lease. Even though of course you will have share of freehold and it is just a formality. You may need to get the current owner to commit to extend the lease or actually undertake the extension for some lenders to release the funds.
You would be well advised to have a brief chat with a specialist enfranchisement solicitor. You can find vetted one at www.alep.org.uk.
Bear in mind that you will pay a few hundred pounds for your solicitor to undertake the lease extension.
However, at 67 years for the flat that you mention, you may find that some lenders are reluctant to lend on such a short lease. Even though of course you will have share of freehold and it is just a formality. You may need to get the current owner to commit to extend the lease or actually undertake the extension for some lenders to release the funds.
You would be well advised to have a brief chat with a specialist enfranchisement solicitor. You can find vetted one at www.alep.org.uk.
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