Homes Under The Hammer

[jamandco]

Hi All

I caught the tail end of H.U.H the other day . A young couple where planning to buy a ground floor flat within a 3 bed house at auction and where planning to remortgage once work had been carried out

but Martin... the presenter, said this might not be possible as the upstairs of the house was on leasehold to another couple, and that there would certainly be a problem in getting a mortgage on it.

Can RL members tell me the difference between Freehold and Leasehold and why it would be a problem for the BS to lend on a prop such as this?

Thanks again all.... for the knowledge you share

regards

Michael

[GPEL]

I suspect there's some missing information as not normally a problem. Flying freeholds are an issue but don't see that it is relevant in this case if the overhead property is leasehold, would be if freehold.

[Molly's dad]

Flying freeholds are an issue

might be a dumb q - whats Flying freeholders?

[plym77]

I have a leasehold flat but the 'freeholder' is whats known as an absent landlord. This can sometime cause mortgage issues, however I simply had to pay an additional one off premium and was able to mortgage with a normal highstreet lender.

[GPEL]

A flying freehold exists where a part of one property extends physically in, over, or under a neighbouring property. The two buildings then depend upon each other for support. Where each property is held as a freehold, the flying element becomes a flying freehold.

The real source of difficulties with flying freeholds has been that although two neighbours may covenant to repair their own properties, once one of the neighbours leaves and sells on, an incoming purchaser cannot take advantage of the benefit and burden of the covenants agreed between the two previous owners, and is not bound by the obligations assumed by the former owner.

Extract from http://www.swarb.co.uk/lawb/lndff2.shtml