RFR deceased owner

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    RFR deceased owner

    My dear old mum passed away last year leaving her flat to be sold as part of the estate. the flat was the top floor of three in the building and she owned the freehold (including garden, garage etc) as well as the lease on her flat. there was 50 odd years left on the lease. given that she was a landlord living on the premises until she passed away and the property is for sale as a package of freehold and flat together as disposal of her assets do we have to give RFR to the leaseholders of the other two flats?

    RFR does not apply to some landlords. These include most housing authorities such as councils, housing associations, charitable housing trusts and certain resident landlords.

    An exempt resident landlord is one who lives in the building and where two conditions apply
    1. The building is not a purpose built block, for example a converted house, which has been converted into flats since its original construction and
    2. the landlord genuinely lives in the building as his only or principal residence and has done so for more than 12 months
    thanks

    #2
    If the leasehold flat has only 50 years unexpired remaining , it should be given a statutory 90 years lease extension before putting on the market for sale or the buyer cannot get a mortgage and seller cannot get the highest sale price.

    The sale is not by a resident landlord, its by the executor . Better to send an enquiry to the legal advisor at LEASE .

    Comment


      #3
      Go to a really good solicitor not some conveyancing bucketshop where your work will be handled by someone less than an expert. I think given that the executors are seized of both the freehold and a fifty year lease they can extend the leasehold interest by simple deed, transferring years to the lease from the freehold. There is no consideration hence no stamp, no chargeable disposal and in so doing no RFR. Ive done exactly this manoeuvre and it seems to work. You then have a full length lease to stick on the market. Once you have sold the long lease get your solicitor to serve notice of sale by auction on each of the leaseholders (section 5b of the landlord and tenant act 1987) then consign the freehold for sale by auction.

      Comment


        #4
        Or do you retain the freehold as a future investment, and sell that top floor flat as leasehold (with a decent length lease, of course)?

        Can always speak to the three (?) leaseholders to offer the freehold in a couple of years' time.

        Comment

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