If you’re looking for a reliable investment opportunity that is virtually guaranteed to provide you with an impressive ROI, you can’t go wrong with property.
Right now, despite the current goings-on in the world, the property market is doing very well, and that trend only looks set to continue for the foreseeable future, which is why it’s so important to take action and invest sooner, rather than later.
For those of you looking to buy a property, you may wish to consider what is known as a ‘Flying Freehold Property’ which is precisely what we’re going to be looking at today.
If you find your ideal property and notice it has a flying freehold element to it before you buy it’s important that you understand the key differences between a regular property and a flying freehold.
To help make things a little clearer, here’s a look at 4 things to know before buying a flying freehold.
You must understand what flying freehold means
As with most things relating to property law, rules, and regulations in this country, nothing is ever as simple as it first appears.
There are a few complexities relating to flying freehold properties, but the very simple explanation is that a flying freehold is a property in which a part of the property either lies underneath another person’s property or overhangs another person’s property.
As an example, you may encounter a property where a part of the property is found hanging above a part of a shared alleyway, or perhaps part of the property could extend over the neighbour’s garage.
Carrying out repairs on a flying freehold may not be straightforward
Okay, say for example you purchase a regular detached property with a decent-sized garden, that has a balcony attached to one of the bedrooms. If the balcony was damaged during bad weather and needed to be repaired, you’d either carry the repair out yourself or phone a builder or handyman and have them do the repair for you. Job done.
Now, if you purchase a flying freehold with a balcony that overhangs over part of next door’s garden, carrying out any repairs could be much trickier. You see, to carry out the repairs, you need to get permission from the neighbours to enter their property (garden) and do the repairs. In theory, they could quite easily say no, and legally, they’re well within their rights to do so.
Neither you nor your neighbour is legally obliged to maintain your property
From a legal standpoint, if you have a leak in your bathroom, you are not legally obliged to get it repaired. If you wish to simply put up with the leak and watch as it gets worse, that’s entirely down to you.
That’s all well and good, but what about if your bathroom is part of a flying freehold whereby your bathroom is located above next door’s bedroom? Well, in that instance, next door would find water coming through their ceiling, yet legally they couldn’t force you to get the leak fixed.
Imagine the shoe is on the other foot, and you find that your property is impacted due to an issue with next door’s property and they didn’t wish to cooperate and rectify the issue, or perhaps they simply couldn’t afford to, there wouldn’t be a great deal you could do.
If you are looking to buy a flying freehold, that is certainly a scenario worth considering.
Getting a mortgage on a flying freehold is harder than usual
Because of the fact that flying freeholds are much more complex, especially from a legal standpoint, some mortgage lenders are a lot more cautious about lending money to people looking to finance the purchase of a flying freehold.
That’s not to say they’ll outright turn you down, but if you are looking to purchase a flying freehold property, don’t get your hopes up until you’ve first spoken to your mortgage lender.