Charges & restrictions against the freehold

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Charges & restrictions against the freehold

    I am considering purchasing a short lease ground floor flat that forms 1 of 2 flats within a 2 storey edwardian property.

    There are a number of issues with the flat and am considering whether it's even worth getting a solicitor on board - as I noticed a number of issues with the lease and freehold.

    Would appreciate your thoughts / advice on what I have noticed so far with the property:

    1) the vendor doesn't want to extend the lease.
    I understand that I can extend in 2 years - which I am ok with (depending on my lease surveyors estimate on costs).

    2) the vendor doesn't want to update the leasehold plan to include part of the ground floor - which is a side return / outrigger which comprises a kitchen and study being used by the ground floor flat.

    It is within the upstairs flats demise area on both their lease, my lease and the freehold title plan.

    This is very strange, because at the time the title was registered and lease extended, the side return was being used by the ground floor flat.

    I am not sure if something shady was going on here (by the freeholder) and the leaseholders didn't have any solicitors to check their legal documents to raise it as an issue.

    I have enquired to the vendors solicitors about rectifying the leasehold and freehold title plan, which they refuse to do.

    They have said this is something I can later negotiate once I purchase the property......

    This is the part that fills me dread - because without that side return the flat is not really worth much.

    3) I noticed that only last year the freehold was sold to a ltd company.

    In the sale, there is now listed the following charges and restrictions:

    Restrictions:
    3. (21.08.2019) RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate, is to be registered without a written consent signed by the proprietor for the time being of the Charge dated 12 August 2019 in favour of Proprietor: A referred to in the Charges Register.


    Charges:
    (21.08.2019) REGISTERED CHARGE contained in a Debenture dated 12 August 2019 affecting also other titles. NOTE: Charge reference EXxxxxxx. x
    2. (21.08.2019) Proprietor: A (Co. Regn. No. xxxxxxx) of Address.
    3. (21.08.2019) The proprietor of the Charge dated 12 August 2019 referred to above is under an obligation to make further advances. These advances will have priority to the extent afforded by section 49(3) Land Registration Act 2002.

    Schedule of notices of leases
    1. 04.11.1987 xx Street Name (Lower 04.09.1987 EGLxxxxxx 1 Maisonette and Garden Ground) 99 years from 24.6.1987
    2. 18.01.2001 xxA Street Name (Upper 27.11.2000 AGLxxxxx 1 (part of) Maisonette) 125 years from 24.6.2000


    Would appreciate if anyone experience in conveyancing/the law can let me know what the restrictions and charges mean for me - if I were to buy the flat?

    I am guessing that the freeholders have been loaned an amount (undisclosed) to purchase the freehold in 2019, and that if I wanted to purchase the freehold I would need to pay the freeholders what they borrowed.
    The loan could be anything.

    I really love this flat, so any advice on how best I should proceed would be much much appreciated!!

    #2
    What is a short lease ? If the lease started at 99 years term from 1987 and fallen 33 years to 66 years remaining term ?

    The freehold title was purchased with a mortgage and the lender has registered a charge on the property at Land Registry and the restriction applies to the freeholder. ( does not to the leaseholder ).

    The site plan of leasehold title for each flat at Land Registry shows the demised area to that flat.

    A compulsory purchase of the freehold title requires both flats to act together. One flat alone can only seek statutory 90 years lease extension. ( download free guide to statutory lease extension from www,lease-advice.org )

    You should seek paid advice from a solicitor firm specialising in conveyancing of residential leasehold property.

    Comment

    Latest Activity

    Collapse

    Working...
    X