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Can I change the title in a building from freehold to a share in the leasehold as I believe a complex setup in the current position makes it unmortgagable
I'm currently looking at potential purchase of a shop unit. The unit is 1 of 6 in a building. The other 5 units are residential. The shop is being sold with a freehold title (I am awaiting copies of title documents). As I understand it, the remaining 5 units are leasehold with each having equal share in a management company that holds a second freehold for the building. Assuming this is all correct, from what I have read, this makes the shop unit unmortgagable. Therefore I would like to determine whether it is possible to alter the title for the shop unit - maybe to leasehold with a share in the freehold (as with the other units) - Or is there any other course of action that would allow necessary changes to make the shop unit mortgageable. The building is on a steep hill. This makes the shop unit the ground floor unit from the front, but at the rear, there is a unit underneath the shop - making the shop a first floor unit from the rear. I would greatly appreciate your comments
It is theoretically possible to merge both freehold titles and concurrently grant a lease of the the shop unit from the existing management company. This will require ;
1. Full co-operation of the management company.
2. Complex changes at the land registry
3. A very careful consideration of any conflicts arising in the leases
You should also consider also defective title insurance.
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