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Dividing A Property Into Flats And Lease Creation
There are various legal factors that have to be considered when it comes to creating new leases when developing a property into flats. It is therefore advisable to make sure you have an experienced law firm on your side to ensure you are covered in every area. At Blackstone Solicitors, we are able to advise many different types of client, no matter the complexity of the circumstances surrounding new Lease Creations.
For more information about how our team of commercial property solicitors can help you with the legal implications of dividing a property into flats and creating new leases, contact us on 0345 901 0445 or complete our online enquiry form and a member of the team will call you back at a convenient time.
How we can help
If you have developed your own freehold property into two or more flats and then required funding from your bank for these new properties, you may encounter difficulties. This is usually because the arrangement on the title deeds don’t match the lender’s requirements because they will not lend on freehold flats.
Consequently, a new lease for each of the flats will need to be registered at Land Registry. This is a complex document as it needs to comply with the lender’s requirements, typically following the Council of Mortgage Lender’s instruction for a leasehold property, and be fully marketable and saleable in the future as an independent unit.
We are here to help with your development and its sub-division regardless of the size of the scheme or its complexity and we will work with you to make sure everything goes to plan.
Friendly yet direct, our team is passionate about every case we take on, and we believe the entire process requires constant communication. We will, therefore, guide you through the technicalities involved, offering expert advice from start to finish.
Why legal help is important
Careful consideration of the maintenance and insurance obligations for the building must be given. In turn, this may depend upon your long term plans for the flats and the size of the building. In addition, the rights of way, parking and communal arrangements need to be correct. All of this will need documenting in the leases.
If the flats are older than 10 years the lender will not require a “new build” structural warranty
However if the property is new or nearly new most banks will insist on a “new build” warranty or professional consultants certificate even though it is just a conversion.
The consultant’s certificate can be provided by your architect, engineer or other professional provided they have overseen the construction of the site. They will normally charge for this. You can also obtain insurance from a structural warranty provider e.g. NHBC and they will also carry out inspections during the build process.
If you have completed the flats then the only option is to obtain a “completed housing” structural warranty which is likely to be more costly.
Blackstone are experts in the drafting of all necessary leases and the full suite of construction documents.
Our team prides itself on being able to meet every need of each of our clients. We are willing to go the extra mile when other firms are not, ensuring our clients are given the very best opportunity of getting the outcome they are after. Get in touch to see how our specialist team can help you today.
Speaking to one of our solicitors is easy, simply call us on 0345 901 0445 or allow us to get in touch with you by filling in our online enquiry form. Our services are available to people throughout the UK, including Manchester, London, Cheshire and Chester, as well as to people living abroad.