lease was disclaimed?

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    lease was disclaimed?

    Hello,
    I'm thinking of buying a leasehold flat.
    Looking at the title register there is the note:

    NOTE 1: The lessors title was registered but the lease was disclaimed by the Treasury Solicitor on 18 October 2016

    What does this mean? Does it affect me buying this flat? Do I still take on the remainder of the lease and its covenants?

    Thanks for any help on this before I go ahead and instruct a solicitor.

    Cheers

    #2
    Who is purporting to sell the flat and in what capacity?

    Comment


      #3
      Hi,

      The agent reports that is is a corporate sale (whatever that means)

      They also report that it is on a short lease of 69 years.

      I'm aware that it will cost me to extend the lease but the price reflects this and I will wait until the government scrap the marriage value in 2023. I understand that the government may not come through with this but I'm willing to take the chance.

      What worries me is that there may not be a lease to extend if it has been forfeit re the disclaim.

      Any info on what it means when the lease is disclaimed?

      Comment


        #4
        There are two possibilities.

        One is that the lease belonged to an individual who dies without heirs.

        The other is that the lease belonged to a company which was struck off the register before the lease was disposed of. The reference to this being a "corporate sale" suggests that this is the case here. If it is, then the disclaimer has the same effect as a disclaimer on insolvency, which is a bit involved. A further complication is that if a struck off company is reinstated the effect is that it is deemed never to have been struck off, which would mean that the disclaimer is deemed never to have taken place.

        I think you need to press for full information.

        (I confess I am puzzled that the Crown disclaimed an asset with more than nominal value.)

        Comment


          #5
          Thanks very much for your answer. I have been reading a bit on this and I think this can also happen if the mortgage is defaulted. The reason I believe for the lease being disclaimed would be because the receivers would not want to pay the ground rent and service charges. I have read that the lease can be vested to a third party but if this doesn't happen then the lease is effectively forfeit and the property reverts.

          Anyway this is a mute point now because I have just heard from the agent, that the vendor is going with another party.

          I quote:
          I have just taken a call from our client and they have decided to run with another party I'm afraid. I have suggested to them you might want to increase your bid but they have said because of the nature of the sale there is little point.
          Absolutely no idea why they would say that there would be no point in increasing my offer.

          Probably best out of it to be honest.

          Cheers

          Comment


            #6
            Originally posted by Johno_c View Post
            Probably best out of it to be honest.
            Saves me having to work out what the position is!

            Comment

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