Buying a property and landlord is selling the freehold

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    Buying a property and landlord is selling the freehold

    Good evening, i hope this is the correct forum. I am purchasing a flat and the seller is also the owner of the freehold of the building. It was agreed that he would grant me a lease of 175 yrs from Dec 2015. The house purchase was going within schedule until the seller communicated to me last friday that I should exchange by this Wednesday. This was quite alarming because there are still a few things that I would like to investigate on (e.g scheduled works and how much they will cost) and the deadline was never mentioned before. Following some chasing, it turned out that they are going to sell the freehold at an auction this thursday and i will have until mid November both for exchange and completion. It seemed a bit dodgy and I was wondering if are there any things worth considering/checking and how and if I should procede. Are there any possible bad implications for me? Thanks in advance for your help

    #2
    How many flats are there ? 2 or more, as the freeholder must give the leaseholders the option of purchasing the freehold, togeter with time limits to accept or refuse, but you may not be subject to knowing that information, nor need deemed it, as you are not a leaseholder.

    Again, how many flats are there ?

    It is very strange to offer you the freehold, then suddenly to want to sell the freehold from under you.
    Proceed with extreme caution.

    He is not granting you a lease of 175 yrs from Dec 2015.
    The lease already in existence, and was made in Dec 2015.
    You give him money, and he will transfer the existing lease to you ( assign )
    PLEASE remember, you are not buying a flat, you are buying a lease to allow you exclusive access the the rooms within that flat for 175 years from Dec 2015, and at the end of the lease, the freeholder is then the owner of the flat, and the occupants get their belongings, and leave, and no payment for the flat, as the flat was leased, not bought.

    Go read the lease as well, as that is what you are buying.

    Me, I would pull out, as an unknown person / company will be operating the running and maintenance ( probably badly ) of the flats if sold at auction. They only buy freeholds to MAKE money off the leaseholders.

    Run away.

    Comment


      #3
      I don't see anything in the OP that suggests that the freehold was being offered with the sale of the flat. I also don't see any reason to assume that the current lease on the flat is what is being offered with the sale - perhaps these details can be clarified?

      For example, the current lease could potentially have very few years left to run which, under 'normal' circumstances would reduce the value of the lease. However, as the leaseholder is currently also the freeholder, he can grant a new lease (which can be given whatever length and start date he wants - perhaps the 2015 date will make the lease the same as other properties in the building?).

      I don't understand why the sale of the lease should be considered urgent because of the sale of the freehold. The current freeholder can grant himself the new lease before he sells the freehold regardless of whether you buy now or not. Perhaps the terms of the new lease aren't particularly favourable so the current freeholder doesn't want to be stuck owning a lease under the stated terms when he has to pay ground rent etc. to another freeholder?

      I would definitely be very suspicious.

      Comment

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