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Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7672
Experience:  UK solicitor holding an England and Wales practising Certificate.
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Hi I purchased a flat 18 months ago and own the freehold.

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I purchased a flat 18 months ago and own the freehold. The property is split int two. My flat upstairs freehold, no lease. And downstairs leasehold. I want to remortgage but am limited because lenders don't like freehold flats. I need to create a lease to get a better choice of mortgages. Is this a simple process or are there many obstacles that would make this a difficult and expensive process?

Thanks for your question.

Is there an existing mortgage on your freehold?

Kind regards

Customer: replied 3 years ago.
Yes there is an existing mortgage. I've just come to the end of a fixed rate and would get a better deal by changing lender.


Thank you for your question and patience, I’m Tom and I’ll try to help you.

It’s unlikely to be particularly difficult to resolve, but you will have to pay some legal fees.

If you have a mortgage on the property and you are remortgaging then you will need to instruct a solicitor to draft the lease in order to execute it upon completion, because the lender will require this.

It’s a bit more complex than a simply remortgage for which you would be looking at around £300-350 + Vat in legal fees, because the solicitor has to draft the lease. The drafting of the lease could be anywhere between £400-700+ VAT depending on how complex the other lease is and whether any detailed rights are require to be granted of reserved. Legal fees for the remortgage would be on top of that but if you shop around you could probably get both done for around £700+ VAT.

The solicitor would take your instructions then contact the lender for consent and obtain your mortgage offer/redemption figure for your existing mortgage. They would then arrange completion after obtaining yoru signature and that of your leaseholder (if required).

My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.

Kind regards,

Thomas and other Property Law Specialists are ready to help you