Q: Equity Release

Q . One of our leaseholders wants to release equity from her property under an Equity Release Scheme. This is the first time we have come across this problem. The management company owns the freehold of all the flats and houses in our development. We are not sure if we can give the leaseholder permission to release the equity in the property to a third party. FPRA Committee Member Yashmin Mistry replies : Unless the lease prohibits tenants from having charges registered against the title, or the freehold title contains a restriction prohibiting a tenant to register again a charge against their leasehold title, we are not too sure why the freeholder would need to provide consent to the equity release scheme? The equity release scheme is similar to a re-mortgaging exercise. The scheme at the end of the process will just register a charge against the title. The solicitor acting for the tenant will probably serve on the freehold company at the end of the transaction a “notice of charge” advising the freehold company of the new charge having been registered.

Q: Equity Release

Q . One of our leaseholders wants to release equity from her property under an Equity Release Scheme. This is the first time we have come across this problem. The management company owns the freehold of all the flats and houses in our development. We are not sure if we can give the leaseholder permission to release the equity in the property to a third party. FPRA Committee Member Yashmin Mistry replies : Unless the lease prohibits tenants from having charges registered against the title, or the freehold title contains a restriction prohibiting a tenant to register again a charge against their leasehold title, we are not too sure why the freeholder would need to provide consent to the equity release scheme? The equity release scheme is similar to a re-mortgaging exercise. The scheme at the end of the process will just register a charge against the title. The solicitor acting for the tenant will probably serve on the freehold company at the end of the transaction a “notice of charge” advising the freehold company of the new charge having been registered.

Question 1

Equity Release

Accepted Answer

Q. One of our leaseholders wants to release equity from her property under an Equity Release Scheme. This is the first time we have come across this problem. The management company owns the freehold of all the flats and houses in our development. We are not sure if we can give the leaseholder permission to release the equity in the property to a third party. FPRA Committee Member Yashmin Mistry replies: Unless the lease prohibits tenants from having charges registered against the title, or the freehold title contains a restriction prohibiting a tenant to register again a charge against their leasehold title, we are not too sure why the freeholder would need to provide consent to the equity release scheme? The equity release scheme is similar to a re-mortgaging exercise. The scheme at the end of the process will just register a charge against the title. The solicitor acting for the tenant will probably serve on the freehold company at the end of the transaction a “notice of charge” advising the freehold company of the new charge having been registered.

Question 2

Equity Release

Accepted Answer

Q. One of our leaseholders wants to release equity from her property under an Equity Release Scheme. This is the first time we have come across this problem. The management company owns the freehold of all the flats and houses in our development. We are not sure if we can give the leaseholder permission to release the equity in the property to a third party. FPRA Committee Member Yashmin Mistry replies: Unless the lease prohibits tenants from having charges registered against the title, or the freehold title contains a restriction prohibiting a tenant to register again a charge against their leasehold title, we are not too sure why the freeholder would need to provide consent to the equity release scheme? The equity release scheme is similar to a re-mortgaging exercise. The scheme at the end of the process will just register a charge against the title. The solicitor acting for the tenant will probably serve on the freehold company at the end of the transaction a “notice of charge” advising the freehold company of the new charge having been registered.

Equity Release

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