Freehold of building subject to leases of other flats

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	Freehold of whole building subject to leases of other flats	ARTICLES AND FAQS Some of the things people ask and problems they have, with our comments and answers. How long does it take? Do I need a Survey? How do I instruct you to act for me? How much do I have to pay you to get started? Do I qualify as a First Time Buyer? I don't have to pay Stamp Duty. Why do some solicitors charge for completing a Stamp Duty Form? We're buying a top floor flat so we get the loft included don't we? The estate agent said so. The place we're buying is empty. The owner died, so it'll be quick won't it? I am selling and buying. Do I have to provide a deposit on my purchase? When do I need to arrange Buildings Insurance? The Contract says that the seller is selling with "Limited Title Guarantee". Should I be concerned about this? What happens at Exchange of Contracts? Do I need to be there? When do you need the rest of the money? List of Frequently Asked Questions (FAQs) How to Choose an Estate Agent Tips about Selling Privately
MORE LINKS Buying Process Selling Process Request an Estimate for Conveyancing Conveyancing Scams Conveyancing Jargon Buster HSBC restrict choice of solicitors Shared Freehold Flats How to Choose an Estate Agent Tips about Selling Privately Back to the Home Page	Sometimes the person who owns a flat being sold also owns the freehold of the whole building. He may or may not also have a lease of his particular flat. Where the building is a conversion, most major lenders will accept this situation, but it is still necessary to look at the other lease or leases to make sure that the flat owner can ensure that the building as a whole is maintained and insured. Whether flats using this scheme are mortgageable with a particular lender can be checked by looking at the Council of Mortgage Lender's Handbook. When you go to the website (see next link) you need first to "Select Handbook" - choose "England & Wales", as this website is only about English/Welsh law - and then select your particular lender from the drop down list. You will want to look at Parts 1 & 2 for your lender. Paragraph 5.7.1 deals with this situation. Here is the link: CML Handbook. Of course, when considering a mortgage, you may not know the precise set up. Sellers can be notoriously vague because they often find it difficult to understand the detailed arrangements themselves! See the general advice on the page about Mortgages on flats with a freehold involvement. Most lenders will accept the situation, but HSBC and First Direct do not subscribe to the CML Handbook and their reaction is unpredictable. A sale or purchase of such a flat can involve the Right of First Refusal provisions of The Landlord & Tenant Act 1987, section 5 (as amended by the Housing Act 1996). This gives a majority of lessees in a building the right to buy the "reversion" if it is being offered for sale. A reversion is the right to collect any ground rent and have the flat revert to the landlord at the end of the lease. The whole business can get quite technical - if a seller is not careful, he can unwittingly commit a criminal offence, by not giving the right notices to the other lessees! This shouldn't put you off proceeding, but if you are thinking of buying or selling such a flat you would be wise to consult a solicitor who has some experience of the matter.

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