I am a co-freeholder of a block of 3 flats, along with one other person. One of the flats is leasehold only and the owner is not on the freehold. It was recently repossessed and was bank owned, however a new buyer exchanged contracts last week. This week they are due to complete on said flat. This was surprising to me since:
1. There are significant service charge arrears (over £10k), which I have an open court claim in progress against the bank for. I don't think the new buyer is even aware of the service charge arrears. I am unclear if the new buyer will take on this debt, if a new claim needs to be raised against him for these arrears, which delays the whole thing again and I am not sure if he can even challenge it, since he was not the owner at the time?
2. I have not agreed to or even been aware that an exchange would take place. Should I not be required to consent to this, or does it not involved any change to the lease if it is purely a new buyer? Do I not need to agree to the completion? The estate agency have just 'told' me it will happen.
3. The new buyer will probably want to extend the lease at some point as there is less than 65 years left. Will they need to wait 2 years before they can issue the request to extend or can this be waived, for an additional premium to me? Will they need to live in and occupy the flat personally for 2 years to be able to do this, or can they do this if it is rented out for 2 years?
4. I understand the new buyer wants to, post completion, subdivide the flat into two flats. Will he need my freeholder permission to do so and will I be entitled to a premium for this if so how is that calculated or agreed? Will he also need planning permission? Will it need a further change to the lease?
5. Will the new buyer be entitled to request to be added to the freehold? If so, how does that work, what does he need to do and will he need to pay a premium to do this?
Sorry for all the questions, but it's a complex area. Any help MUCH appreciated. Thank you in advance.
1. There are significant service charge arrears (over £10k), which I have an open court claim in progress against the bank for. I don't think the new buyer is even aware of the service charge arrears. I am unclear if the new buyer will take on this debt, if a new claim needs to be raised against him for these arrears, which delays the whole thing again and I am not sure if he can even challenge it, since he was not the owner at the time?
2. I have not agreed to or even been aware that an exchange would take place. Should I not be required to consent to this, or does it not involved any change to the lease if it is purely a new buyer? Do I not need to agree to the completion? The estate agency have just 'told' me it will happen.
3. The new buyer will probably want to extend the lease at some point as there is less than 65 years left. Will they need to wait 2 years before they can issue the request to extend or can this be waived, for an additional premium to me? Will they need to live in and occupy the flat personally for 2 years to be able to do this, or can they do this if it is rented out for 2 years?
4. I understand the new buyer wants to, post completion, subdivide the flat into two flats. Will he need my freeholder permission to do so and will I be entitled to a premium for this if so how is that calculated or agreed? Will he also need planning permission? Will it need a further change to the lease?
5. Will the new buyer be entitled to request to be added to the freehold? If so, how does that work, what does he need to do and will he need to pay a premium to do this?
Sorry for all the questions, but it's a complex area. Any help MUCH appreciated. Thank you in advance.
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