Hi - after some help - gf's son is looking at a new build block of apartments - which are being sold 'share of freehold' - can anybody here advise me on questions to ask, things to check.
e.g communal lights are communually paid - how, and what happens if somebody doesn't pay
garden fence - who pays when it blows over
tile off ? etc etc
Thanks
Share of freehold actually means that all the resident owners own the freehold and each flat is leased (leasehold) under that freehold, sounds complicated but it isn't really. Your solicitor should check out and inform you of all the ins and outs as well as the maintainence contract. If you need to raise a mortgage on it make sure there is at least 70-80 years left on the lease.
e.g communal lights are communually paid - how, and what happens if somebody doesn't pay
All share of freehold/leasehold agreements can be different but generally you pay an amount which goes into a pot to pay for things like this. A company or a person will administer it and their costs are built into the contract usually too.
sorry, questions.
.how much is the maintainence contrct pcm
.how many years does the lease have left to run
.what % of the flats are owner occupied (if known, some lenders will ask)
.how many storeys does the building have? (if you can't work it out, again some lenders might have restrictions on very high blocks)
Also a lot of lenders now have restrictions on new build flats and either just won't lend on them at all or if they do under 75% or sometimes even 60% LTV.
it's a brand new custom built building just on market, and as I understand it ALL flats are being sold same way
"The properties will benefit from having a 999 year Lease and will own a Share of the Freehold." (*new so 10 yr NHBC 'guarantee' - ho ho ho)
4 stories ( inc basement apartments) - it looks very much like a big house but is custom built as apartments
? I don't think there is a maintenance contract, I **think** that all 'shareholders' own the entire building and they might need to set up a mgmt company to own etc as it has > 4 flats
Hi - www.tjmlaw.co.uk
He specialises in this area.