Leaseholder had balcony 'stolen'.

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    Leaseholder had balcony 'stolen'.

    This situation has come to me via a local community forum,

    Mr A buys a leasehold 1 bed conversion flat in 1996 on 99 year lease for £43,000. Mr B buys upstairs 2 bed flat and rents it out. The freeholder Mr H also owns the ground floor shop part of which he gets consent on to create a 1 bed dwelling.

    Whilst Mr A is away Mr H extends part of the back shop and creates the dwelling with roof lights but not quite what he got planning consent for. During the works A's balcony is removed and cannot be replaced due to the angle of the new roof/lights and the skimpy materials used on the roof.

    Suddenly Mr H becomes ill and incapacitated. The balcony dispute business is put on hold and Ms M sends out demands for payment of ground rent and repairs to herself saying she has Power of Attorney. A and B are suspicious and pay nothing and are now 3 years in arrears. The building in general is in a poor state of repair.

    Mr H died just before Christmas and a solicitor's letter to Mr A and B says the freehold is for sale for £60,000 by Ms M who has inherited the freehold etc.

    What is the best way for Mr A to go on? Mr B does not want to buy the freehold. He does not have much in the way of funds, is retired and does not really want to move. Re-sale on Mr A's flat is around £130,000.

    Thanks for reading so far.

    Freedom at the point of zero............

    This is a freehold that comes with a dwelling, not just ground rents.

    There cannot be too many areas of the country where a 1 bed dwelling is worth less than 60K, if this is such a place, snap it up.

    You could create a lease for the dwelling downstairs and sell it, after sorting out your balcony of course.


      I think you have missed the point here paulamis. Elderly gent, no cash, lease running out, building falling to bits.

      Mr A does not have £60,000 to buy the freehold (not that it is worth that) and the shop cannot be converted to a flat under planning rules in that street.

      Any experienced lease experts with sensible ideas please?

      Freedom at the point of zero............


        Sorry, thought you were representing A and B was a retired 3rd party.

        You said they had permission to create a dwelling, so I guess you mean there is a shop with a dwelling out the back somewhere. If the dwelling had permission then someone must be allowed to live in it, it must be worth something.

        If A cannot afford the FH it is moot anyway, just has to hope for a good new FH.

        If the bldg is in poor condition, a new FH may/should decide to fix it up, could be a large bill, if A will struggle with that, then maybe sell now.

        Ideas beyond that would get into financial advice for which you have to ask a pro.


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