Leasehold/ Freehold

[jeff2112 10]

and that makes 5

[Jeffrey Shaw 93]

Is it risky to buy a flat that is already a freehold or is it only a risk if the other flats in the block are leasehold?

 

I am aware that it can be difficult to get a mortgage to buy a freehold flat.

You're right. Never buy a 'flying'/'creeping' freehold, caused by splitting the block of flats. The best maxim is 'NEVER EVER SEVER'.

 

But a leasehold flat with a 'share of freehold' is perfectly OK.

[El Diego 10]

You're right. Never buy a 'flying'/'creeping' freehold, caused by splitting the block of flats. The best maxim is 'NEVER EVER SEVER'.

 

But a leasehold flat with a 'share of freehold' is perfectly OK.

 

What about a freehold flat in a block of freehold flats, is that risky and if so why?

[Jeffrey Shaw 93]

What about a freehold flat in a block of freehold flats, is that risky and if so why?

Yes. The problem (too complex to summarise adequately) concerns covenant enforcement, which works only if someone - e.g. the freehold reversioner- has an estate in respect of all the flats superior to the estates of the leaseholders.

[El Diego 10]

Yes. The problem (too complex to summarise adequately) concerns covenant enforcement, which works only if someone - e.g. the freehold reversioner- has an estate in respect of all the flats superior to the estates of the leaseholders.

 

Are there are any situations in which buying a freehold flat would be ok or would you just avoid altogether?

[Jeffrey Shaw 93]

Are there are any situations in which buying a freehold flat would be ok or would you just avoid altogether?

It would be 'OK' only:

a. under a 'commonhold' umbrella scheme [but there's virtually none anywhere]; or

b. in certain limited areas where a few- not many!- mortgagees are prepared to lend (e.g. Scarborough).

 

But personally I'd avoid a freehold flat like the Plague.

[Ddddb 10]

Hi Kaye,

 

If you still have a copy, I also would appreciate a copy of the letter you sent to the freeholder.

 

Thanks,

Damian

[Ddddb 10]

p.s. I would have pm'd you, but as another user stated above, one must first make five posts.

[El Diego 10]

I'm interested in buying a flat but part of the lease seems to state that you can't have a satellite dish. This is what it says:

 

'not to erect any pole mast wire or dish (whether in connection with telegraphic radio or television communication or otherwise) upon the Premises'.

 

It seems pretty clear cut but looking at pictures of the flats in the block each one has a dish, including the one I want to buy. Is it possible that they sought permission from the management company or would this option need to stated in the lease?

[Jeffrey Shaw 93]

Where there's a restrictive covenant, it is either absolute [as in this case] or qualified [i.e. with the extra words something like "Except with the landlord's consent, not to..."]. Both necessitate consent but an absolute covenant entitles L to grant or withhold consent at will- i.e. T has no comeback. Contrast this with a qualified covenant, when L has to provide a valid reason- as the words "such consent not to be unreasonably withheld or delayed" are implied. So, yes, each T with a satellite dish needs L's consent. Before you proceed, tell your solicitor to investigate this thoroughly.

[El Diego 10]

Where there's a restrictive covenant, it is either absolute [as in this case] or qualified [i.e. with the extra words something like "Except with the landlord's consent, not to..."]. Both necessitate consent but an absolute covenant entitles L to grant or withhold consent at will- i.e. T has no comeback. Contrast this with a qualified covenant, when L has to provide a valid reason- as the words "such consent not to be unreasonably withheld or delayed" are implied. So, yes, each T with a satellite dish needs L's consent. Before you proceed, tell your solicitor to investigate this thoroughly.

 

Thanks for this explanation. Another clause relates to being able to rent out the flat and it is a qualified covenant as it mentions something along the lines of being 'unreasonably withheld'. What is generally considered as being 'unreasonably withheld'?

[Renault2010 10]

I remember there was a pub on sale for 10k, their leasehold was about to expire in 2 years. think it answers your question