Both leases and both shares of the freehold?

[Loose Chippings Property]

I bought a flat in a covered house last year. I own half the freehold and have a 999 year lease on the flat.

There's a possibility of purchasing the remaining flat, also with a 999 year lease, which has the other half of the freehold.

I'll need a mortgage on the new flat - but have been warned that mortgage companies don't like owners to have both the freeholds and the leases.

Is the solution to:

1)
Set up a limited company & put both the freeholds in there with 2 shares? Then incorporate into each lease a requirement of any subsequent flat owner to take up membership of the freehold company?

2)
Alternatively, could I get a relative to be a freeholder?

 

- or something else?

 

Many thanks.

[chrisaaaaa]

Isn't option 1 the norm anyway, are you sure you do not already own a share in a company which owns the freehold?

[Loose Chippings Property]

Thanks chrisaaaaa, you don't need a company to hold a freehold. So, no. Not yet!

 

After more research, there seems some mortgage companies that will entertain 1) and many who won't. It does seem to be a market that seems to change week on week though.

 

Onwards.