Freeholder duties

[FreeH1]

I am trying to sell my flat for which I have a shared freehold with the 2 other flats in the block.

Today I have been informed that one of the freeholders is refusing to complete and return the TR1 (and another form I believe is the PR1?). Without this we are unable to continue with the sale of the flat and also this will effect our onward purchase.

Typically I was emailed about this at 5 on a Friday so now have to wait until Monday to see what our options are but my
solicior did say she is at a loss as to what to do if the freeholder doesn’t sign.

The reason she seems to be reluctant to sign and return the forms is because she didn’t like something my solicitor said or did.

Is is there anything we can do? Surely we can’t be bound to live here forever?

[leaseholder64]

TR1 sounds like the Land Registry transfer form. The freeholder wouldn't to have to sign this for the leasehold, so I assume it is being done to transfer the share of the freehold, in which case you could assign the leasehold without but retain your share of the freehold.

[FreeH1]

Thanks for your response.

We don’t really want to retain a share of the freehold and we are selling the flat as share of freehold. I would assume if we decided to keep the share of freehold the buyer may reduce their offer?

The other form is a LPE1 form.

Could we take the freeholder to court for not signing? If we lose our sale could we get the freeholder to pay our costs?

We are close to exchange and this is holding things up.

[leaseholder64]

The freeholder is in no obligation to complete either of these forms.

LPE1 is the form in used to ask questions of a freeholder, manager, or managing agent, in relation to a leasehold property.

[FreeH1]

So if I understand this correctly, the freeholder doesn’t have to complete the forms which would mean we have to live here forever (or unless and until they decide to sign)?

[leaseholder64]

Or you have to make a cash sale at below the normal market value. That sale would be of the leasehold, only.

This is all subject to any trust deed that ma have been signed by all the joint freeholders.

[josepha333]

Given your OP you own a third of the freehold and you may be suffering a financial loss if unable to sell, what is the position with the other owner of the flat?

[FreeH1]

Thank you. I thought I had read that they were obliged to sign.

The other owner is happy and willing to complete the forms. There are no issues there. It’s just this one freeholder who doesn’t appear to be willing to complete the forms.

If if unable to sell we would lose £1,000 we already paid for searches and surveys and I’m not sure how much, if anything, my solicitors will charge for the work they have already carried out.

[eagle2]

I would try to have a word with the freeholder who is refusing to complete the forms and find out her reasons. If that does not work, a strongly worded letter from the solicitor stating that you will be seeking compensation should be sent to the freeholder. Actually proving a loss as a result of the failure of the freeholder to complete a form is another matter.

[leaseholder64]

Any duty will be in the lease or the deed of trust, neither of which I can read from here.

[Sarah B]

I recently bought a flat where this was the case and an ID1 form was requested after completion, I don't remember a TR1 which required signing for the freehold to constrain the sale (we already owned a flat in the block so would have seen it). If they don't sign you can apply to the court for a transfer of title and you may get costs awarded against them. Yes they are obliged to sign, it will probably be in the lease that the transfer is part and parcel of the flat sale (so retaining it is unlikely to be an option). I suggest a strongly worded letter from your solicitor to that effect might get things going, sounds like your solicitor is not all that experienced.

The LPE form is usually completed by the managing agent but if you don't have one, you can do that yourself - it's just information on the flat and works being done. Download it and have a look.

[FreeH1]

My understanding is if you own a share of the freehold you can’t just transfer your share to the new buyers, so effectively the whole freehold needs to be transferred which requires the TR1 form (happy to be corrected if this is not the case).

I do believe the LPE form only needs completing by one person, but again, my understanding is that the buyers (and/or their solicitor) want the other freeholders to also complete the form to confirm we all agree.

There is is no management company it’s just us 3 (plus my husband who owns a 3rd of the freehold jointly with myself) which deal with things as they arrive.

Do you know where I can find somewhere which states she is obliged to complete the form?

Thanks for all your replies