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Has anybody purchased a property with "Good Leasehold" Ownership and obtained a Mortgage.
Initially, it will be a cash purchase but I have been led to believe obtaining finance on this type of Title can be difficult.
Any help much appreciated, This is the first time dealing with this.
Yes we purchased a house (!) with good leasehold title. It was going to be an issue for the lender (Paragon), but through our solicitor we have since had it "upgraded" at land registry to "title absolute" - it was a fairly simple process and only cost a couple of hundred £. Our solicitor has been a royal PITA generally though, and have found more and more problems and imaginary issues, so we still have not completed the remortgage more than 4 months into the process...
Its not a problem if the lease is valuable enough and long enough. The value diminishes fairly fast as the lease gets shorter. Lenders often have a cut off at 70 years for the mortgage to be repaid but there are some who go shorter. You need also to check the obligations on the lease as some have excessive ground rent increases which depress the lease value.
And of course you are likely to have the right to enfranchise but lenders won't consider that unless it is part of the deal on completion.
So I don't think you will have a problem subject to the above.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
J Stuart Thompson,
I think that you have missed the point here. Good Leasehold Title is where there is insufficient documentation to confirm ownership of a property. As another poster said, "Title Absolute" is what is required to confirm true and full ownership. If the land is not registered or the freeholder cannot be identified, then a leasehold property will be registered as Good Leasehold, rather than Title Absolute.
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I would be asking the vendor to get the work done to convert the leasehold to an absolute at the LR. You are not guaranteed to be able to do this, and the freeholder could turn up and say whoever sold the leasehold didn't have the rights to do so and turf you out.
Thank you for the help people.