Monday, 29 August 2016

Flying Freehold Enquiries Take Off Post Brexit

CML post Brexit figures already indicate a slowdown in housing market. Perhaps it’s not surprising that so called ‘problematic properties’ i.e. those with more unusual characteristics are more difficult to sell.

Specialist website has reported a ten-fold increase in enquires concerning flying freehold this August. This includes calls from a number of sellers who expressed surprise that their lawyer had not given them any context enabling them to understand the extent to which lenders as a whole react to such properties. Potential for claims? Time will tell.

In January this year Lexsure reported that during 2015 changes to the CML Handbook focused on problematic properties such as flying freeholds, properties with absentee freeholders as well as properties with short leases.

Examples of recent queries to  in the last few days include :

I am buying two adjoining cottages which have a shared archway that runs under the rooms above. So there is a flying freehold, which is fine for me as I will own both, but how do I protect myself during the purchase so that in the future I can sell the individually without problems?

‘I inherited a property from my father which has a flying freehold but I don't have very much documentation. I have been told that it is "unmortgageable" because of this but I want to investigate further. What documentation would I expect to have for a flying freehold? The property is in South Wales.

I was just wondering if details of a flying freehold have to be added in sales details when selling the property

I am interested in a property which has a garage below which has been sold. this has created a flying freehold, would it be possible to get a mortgage?

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