Freehold maisonette with sitting tenant

[Seaside3]

I have inherited a registered freehold maisonette with sitting tenants paying a low rent. There is another freehold maisonette above which I think is let on a (long) lease. There is a deed of covenant between previous owners of the two maisonettes saying who owns what and setting out mutual covenants and rights.
I think it would be very difficult to sell as is, to anyone needing a mortgage. Are there are any steps I could take to improve the title situation and my chances of selling? Thanks.

[Richard Webster]

First make sure that you don't own the freehold of the whole building subject to the lease of the other maisonette - that is acceptable to most mortgage lenders under the CML Handbook - see my website at Freehold of building subject to leases of other flats | Flat with freehold as well

If the freehold of the other maisonette is owned by someone else then you would have to approach that person to see if you could have both freeholds transferred to joint ownership . The two of you could then grant a lease of your flat to a buyer.

If you can't get the other freehold owner to co-operate then when you want to sell, put the flat in an auction and hope that somebody is silly enough to buy it.

[Seaside3]

Thanks for help. Unfortunately it is a freehold maisonette above too. Would it be possible for me to grant a long lease (subject to sitting tenant) to myself or family member before trying to sort out freehold so that the other freeholder doesn't have to be involved in that? They seem to have already granted a lease of the upper maisonette. Bit nervous about negotiating a transfer of freehold to both of us without long lease in place,especially as its going to be hard to find a buyer.

[terrypuckett]

Hello, I only purchase properties with sitting tenants (life tenants) If you are looking to sell I'm happy to make a cash offer. I will need the following information.

Address
Age of tenants and rent paid
Also if you know what the flat would be worth if sold with vacant possession that would help.

I'm happy to either purchase the freehold or a new lease.

Regards Terry

[Richard Webster]

In the short term granting a lease to yourself and a friend/relative doesn't solve the problem - see post #21 on this thread:
Yet Another Freehold Flat Question! - Page 2 - MoneySavingExpert.com Forums

If you negotiated a transfer into joint names of the freehold of the whole building then tactically it might be better to grant the lease immediately before such transfer, but I wouldn't waste money solicitor's costs in drawing up a lease at this stage. Also it would only work if you ended up with a jointly owned freehold and the two leases were consistent with each other in terms of repairing and insuring responsibilities.

A freehold literally jointly owned can be a good thing - but there are dangers. See Shared Freehold Conveyancing | Conveyancing of Flats, Apartments, Maisonettes with Share in Freehold and The Pros and Cons of Shared Freehold Flats

[Seaside3]

Thank you very much for the advice and helpful links Richard.
I will probably do nothing in the short term as there is a sitting tenant.
In the longer term I will try and find out more about the terms of the lease of the upper maisonette. It seems to be registered and if they are a long leaseholder they might be interested in jointly approaching their freeholder to transfer the freehold to both of us.
Alternatively I could approach the other freeholder to see if they want to buy me out, transfer their freehold to me or share the freehold. Hopefully they will still be around if collecting ground rent.
It sounds as if sharing the freehold with either the other freeholder or leaseholder could also have problems and I will read the links in more detail.

Thank you Terry for your post - i'm not in a position to sell immediately, but helpful to know.