• Splitting Freehold

    By Guest on 08th Dec 2016

    Hello, I want your advise we have freehold terrace house in central London the shop is let at 16 years lease with rent review every Five years. Flat is over two floors with six bedroom accommodation on upper two floors
    We want to keep the shop and sell the flat as a freehold by splitting as two separate units, we don't have a mortgage on it as we are elderly couple we need the shop income the building is classified as partly commercial. Can you advice how can we go about it and wether it will be in our interest in the long run, we want to sell the flat and move out the best advise will be welcome, roughly also tell us what cost will be involved

  • 1 Answers

    By Guest on 21/12/2016

    If you want to keep the shop then you should sell the flat as leasehold on a long lease. Basically, instead of transferring the freehold of the flat to a buyer (freehold flats are, for reasons I won't bore you with but you can discover if you search these pages, not mortgageable and so not very attractive to buyers) you should grant a new lease. You can choose the lease term but a buyer would generally expect at least 99 years. As to costs, you will need to ring around a few solicitors but make sure you explain that you will need them to draft a new residential long lease for you

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