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“Ask the Expert” Get all your legal questions answered by our


expert Solicitor Sheldon Owen, Conveyancing Solicitor at Bowden Jones Solicitors, Swansea. Q: Are you thinking of Buying and Selling a


Freehold Flat? What are the problems? A: A Freehold Flat is rare because flats are usually Leasehold in nature. Tis means Freehold Flat owners can therefore experience difficulty when major structural problems arise with the property arise. With a Leasehold Flat, the adjoining flat owners should have provisions in their respective leases dealing with repairs and maintenance concerning communal parts, common walls etc. Tere would usually be a ‘Mutual Enforceability Clause’, so if one Leaseholder is in breach of


the covenants


contained in their Lease then, the other Leaseholders can enforce those covenants against the offending Leaseholder to comply with them. Ultimately, the Landlord, who owns the Freehold title, may consider forfeiting the Lease due to there being a breach of the covenants in the Lease. Te situation is very different though with Freehold Flats. For example, a block of Freehold Flats and the roof needs repair. Who is going to pay for it? Te Ground Floor Freehold Flat may argue that the top Freehold Flat should be responsible for this and refuse to contribute towards the repair costs. Legally, there is no automatic system of making the liabilities to pay monies run automatically with the Freehold land. You are therefore reliant on the other Freehold


Flat owners in the block to maintain part of the structure such as the roof, main walls or foundations and unless there is a clear legal agreement in force between you then, this could cause massive problems on agreeing structural repairs and associated costs.


Q: Issues to consider before purchasing a Freehold Flat? Mortgage Lender’s stance on


Freehold Flats? A: Can a Mortgage be obtained and how easily can the property be sold at a future date? You wish to buy the Freehold Flat as an investment to sell on quickly without problems but, must bear in mind that any future buyer may also need Mortgage finance to proceed. Birmingham Midshires, Halifax and Yorkshire Building Society for example, do not presently lend on Freehold Flats, although some Lender’s may lend,


they will most certainly have certain strict


requirements that must be met before doing so. You must seek sound financial advice well in advance before buying a Freehold Flat with a Mortgage and also ensure the Lender knows everything about the Freehold Flat before proceeding. Mortgage Lenders can of course withdraw Mortgage Offers under certain circumstances. You must therefore treat purchasing a Freehold Flat with extreme caution and carry out prior due diligence.


Q: What can a Conveyancing Solicitor do to


protect you? A: A simple fix would be for all the Freehold Flat owners in the building to co-operate at the same time in bringing the Freehold together to grant leases to each of the flats. Any new Lease would be a Long Lease, for example, a 999 year least at a nil/peppercorn rent. Provided all the Freehold Flat owners agree to proceed on this basis, the instructed Solicitor can then obtain the consent of any Mortgage Lenders who have security over the Freehold Flat titles, to accept the new Leasehold title in substitution suggesting this will offer better security for the Lenders. Te Solicitor would then involve a Surveyor to obtain compliant Land Registry lease plans, draſt and complete the Leases and then register the changes at


the Land Registry.


If you require more detailed advice then please get in touch with our Conveyancing Team by calling 02920 484550 or by visiting www.bowdenjones.co.uk/conveyancing.


New Homes Wales and the South West


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