Solicitor sent section 42 to wrong freeholder

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    #16
    probably, the OP should get hold of a copy of the transfer from HMLR and take a view as to whether to insist on acquiring the property illegally sold over his head if no section V notice was served

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      #17
      You said your solicitor served the 42 notice on old freeholders - what was date of serving notice of application for statutory lease extension ?

      What was the registration date of transfer of freehold title to new company by old freeholders ? You can buy a copy of the freehold title from Companies House online for 3 pounds by credit card and download. So compare the dates for overlap .

      Have you checked Companies House for filed records of new company to identify the names of existing shareholders and directors for past 2 years? This should show full 2 years ownership to be an associated company for claiming exemption from offering RFR.to all the leaseholders in the block..

      The transfer of freehold title should mean the "associated company" takes over from the old freeholders, all the legal obligations to their leaseholders. You are entitled to statutory 90 years lease extension at peppercorn ground rent by serving section 42 notice. and alternative offers is a refusal by new freehold company to comply to the leasehold legislation.

      As flyingfreehold has posted in no. 14 , you can report to Police Station about this entire situation and offences committed ( no RFR offered Under Housing Act 1996 ) and get the Police Station Complaint number.

      I think you personally quoting the Police Station Complaint number. could apply to the local Magistrates Court for a declaration the current associated freehold company has taken over responsibility of previous freeholder and is required to offer you statutory 90 years lease extension .( or else ask your solicitor to sort this part free of charge ).

      Its less costly to sort this matter now based on "current market value" being your purchase price for the property.

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        #18
        Hi flyingfreehold, thank you for your reply. As I said, I have checked and the freeholders did transfer the freehold into a wholly owned company that they have owned for over 2 years. Therefore I think this means that they did NOT have to offer the freehold on a RFR. AM I correct or incorrect?

        Also, what do you mean when you said "you are sitting pretty. you are entitled to purchase at the same price as did the transferee, I believe notwithstanding that you can make another claim, the claim made against the former owner does not in my opinion nullify a fresh claim against the actual landlord". Please forgive my ignorance but all this is very new to me.

        Thanks very much for your help and advice.

        CBH

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          #19
          Hi Gordon999 and thank you for your reply. I have checked with companies house and the company that hey transferred the freehold to, has been in operation for over 2 years and they are directors of the company. So I believe that the RFR does not apply. If the RFR does not apply, surely I cannot go the Police Station and report it as a crime? Or have I missed something. Please tell me if I have.

          Where you say "The transfer of freehold title should mean the "associated company" takes over from the old freeholders, all the legal obligations to their leaseholders. You are entitled to statutory 90 years lease extension at peppercorn ground rent by serving section 42 notice. and alternative offers is a refusal by new freehold company to comply to the leasehold legislation", does this mean that they should honour any request about the lease extension? For example, if they request was made AFTER the transfer to the incorrect Mr and Mr Landlord, do they still have to honour the request for a lease extension.

          I am sorry about this buty I am getting very confused.

          Thanks very much again for all of your help.

          CBH

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            #20
            Originally posted by Gordon999 View Post
            When the freehold title changes ownership , the leaseholders must be offered right of first refusal or it becomes a criminal offence. .

            Was any RFR offer made to you or previous flat owner?
            Yes my thoughts too. Either the FH is the same and therefore it was correct to send it to any old address or it is a change of FH and he should of informed the LHs and offered a right to buy, not doing this has serious consequences, either way it looks to me as if the FH is in the wrong.

            There is lots of legislation that ensures the LH is kept informed of the FHer, S47 & S48 relating to Service Charge demands for example.
            Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

            I do not accept any liability to you in relation to the advice given.

            It is always recommended you seek further advice from a solicitor or legal expert.

            Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

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              #21
              Yes it 'may' be possible to transfer it to another entity under some circumstances but generally any change of hands does need a RFR... yes it is a crime but there are many similar ones that in reality are a bit meaningless, its supposed to be upto a Local Authority to prosecute but rarely do they.
              Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

              I do not accept any liability to you in relation to the advice given.

              It is always recommended you seek further advice from a solicitor or legal expert.

              Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

              Comment


                #22
                I'd follow the advice from Sgclacy in post 6. You paid the solicitor for a professional service and they haven't delivered. Worst case scenario they serve a valid S42 in two years and cover the additional legal costs and any increase in premium. Follow their complaints procedure with this as the goal. It will be the cheapest and least stressful way to resolve.

                Not convinced that the RFR would have applied in this case as they have transferred from an associated individual to an associated company, if they had transferred between 2 associated companies it definitely would not have applied. Pursuing this angle will be expensive and no guarantee of success.

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                  #23
                  Again thank you all for your advice and apologies for the delay in responding. The events after my accident have slowed me down. With all the advice, I have decided to follow the path suggested my sgclacy and DNM2012 and pursue my solicitor to try and finish the application in September 2019 and to shoulder the additional costs. I feel if I can show that I have been reasonable in trying to sort this out informally, it would stand me in good stead if I need to go to the legal ombudsman.

                  I have written a letter which I will email across, but I was wondering if anyone would read over it for me to make sure I haven't made any glaring errors or shot myself in the foot. I know that this is a lot to ask of this community, but I just do not have the money to use a solicitor. If anyone could help that would be great.

                  Once again, thank ylou all for your time, help and support in this extremely stressful matter.

                  CBH

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                    #24
                    a landlord can drop down a property into a subsidiary type company without triggering RFR

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