Can freeholder assign LVT award in favour of successor?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Can freeholder assign LVT award in favour of successor?

    I’m a leaseholder in a block that is undergoing a collective enfranchisement scheme. I’m not a part of it.

    My lease was originally granted for 72 years back in 1971.

    I have had cause to take my landlord to the LVT on one occasion and on another occasion it elevated to the Lands Tribunal.

    The totality of what was adjudicated was just under £8,500.

    I’ve yet to pay and my landlord hasn’t chased me for it.

    The eventual freeholder, come a few months time, will be the RTE company.

    Taking account of s.141 of the Law of Property Act 1925, whose effect is that the RTE company can pursue me for the £8500. But can they??

    You see if the LVT and Lands Tribunal awards are deemed to be akin to a court judgment, then I understand that a court judgment debt can only be recovered by the owing party and the effect of s.141 will not apply.

    Does anyone know if an LVT and Lands Tribunal awards are deemed as effectively judgments or can they be passed on under s.141?

    #2
    Originally posted by KTan41 View Post
    I understand that a court judgment debt can only be recovered by the owing* party
    It can be assigned.

    *I assume you mean "owed"

    Comment


      #3
      Originally posted by Lawcruncher View Post
      It can be assigned.

      *I assume you mean "owed"
      Yes. T owes money to L1. L1 is transferring the f/r to L2. Almost certainly, L1 and L2 will agree on completion that either:
      a. L1 retains benefit of debt, benefit is not to pass to L2, and L2 will execute a Deed re-vesting benefit in L1; or
      b. L1 also transfers benefit to L2, L2 pays-up debt to L1, and L2 is enabled to recover debt from T.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

      Comment


        #4
        Thanks. That what I thought. Now lets assume:-
        1. That neither L1 or L2 make any provisions for the LVT & Lands Tribunal adjudications at the time of negotiating the f/h sale, and/or

        2. L1 does nor ask, and L2 therefore does not pay L1 the adjudicated sums on completion of the f/h.

        Then what?

        Can L2 demand T to pay him?


        I'm T by the way.

        Comment


          #5
          IF lease is dated 1 January 1996 or later, the benefit transfers from L1 to L2, by automatic operation of law under s.3(1) of Landlord and Tenant (Covenants) Act 1995; a tenant covenant's benefit is annexed to the f/r and so passes to L2.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment


            #6
            My lease was dated in the 1970's - so well before 1996.

            Comment


              #7
              Originally posted by KTan41 View Post
              My lease was dated in the 1970's - so well before 1996.
              So there is no automatic assignment. Benefit stays with L1 unless:
              a. L1 assigns it explicitly; or
              b. L2 pays-up, which might imply assignment.
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment


                #8
                Originally posted by jeffrey View Post
                So there is no automatic assignment. Benefit stays with L1 unless:
                a. L1 assigns it explicitly; or
                b. L2 pays-up, which might imply assignment.

                Thanks for that. Is there any sections of legislation(s) or authorities that I can refer to on this point should I ever need to refer someone to it?

                Comment


                  #9
                  Originally posted by KTan41 View Post
                  Thanks for that. Is there any sections of legislation(s) or authorities that I can refer to on this point should I ever need to refer someone to it?
                  See:
                  a. section 77(1) of Law of Property Act 1925, for pre-1996 leases; and
                  b. the 1995 Act, for post-1995 leases.
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #10
                    I have read this thread as I have a similar matter for a pre-1995 lease.

                    I take the point about assignment – there would be no doubt that a formal assignment would need to take place for a court order or judgment that was issued in favour of L1 - however can L2 say that an assignment need not have taken place for LVT and Lands Tribunal awards made in favour of L1 as such awards are merely adjudicated sums that are recoverable by covenant under the lease, relying on s.141 (1) of the Law of Property Act 1925 which states:-

                    “...shall be annexed and incident to and shall go with the reversionary estate in the land”

                    Comment

                    Latest Activity

                    Collapse

                    • AGM cancelled.
                      by Grumio
                      Is this legal?

                      A bit of background, we currently have three directors, we are allowed to have up to a maximum of eight directors according to the articles of association. We are all leaseholders. Last summer the three directors decided to hire a managing agent who is now in charge of the...
                      26-01-2022, 00:46 AM
                    • Reply to AGM cancelled.
                      by Andrea Cunningham
                      Call an EGM. Make sure you give proper notice and that it is legal (download a boilerplate notice off the internet). In that EGM you can vote new directors in, or even vote the old directors out.
                      26-01-2022, 07:14 AM
                    • Lease extension triggers doubling ground rent change
                      by SouthernDave
                      Has anyone had dealing with doubling ground rents?
                      i have just asked for a quote for a lease extension and they are proposing new ground rent terms of a doubling ground rent every 25 years. My commercial guy has said some lenders don't like these which may reduce the value of the property of i...
                      25-01-2022, 22:53 PM
                    • What can I do about my right of way.
                      by Trevor62
                      I live in the upper flat of a maisonette, I have a right of way that goes around the back of the building from the side entrance, there are only two flats in the building.

                      Anyway for years there has been a gate with a lock to go through the right of way, now for the past year the flat has...
                      23-01-2022, 23:01 PM
                    • Reply to What can I do about my right of way.
                      by Trevor62



                      This is the ROW as it is in the land registry.


                      Can I ask another question?

                      As you can read it says Boundary determined by edge of pavings. Before the other party moved out they built a fence along the boundary though they build it on my side of the...
                      25-01-2022, 20:58 PM
                    • Enfranchising from a company I'm already a member of.
                      by Andrea Cunningham
                      The estate I live on has 2 blocks. All the leaseholders are members of the company which owns the freehold and manages the block ("Share of freehold").

                      Suppose one of the 2 blocks decides to go it alone - so in other words gain the freehold from a company they are already a member...
                      04-10-2021, 12:07 PM
                    • Reply to Enfranchising from a company I'm already a member of.
                      by Andrea Cunningham
                      As I said right at the beginning, there are some very sound reasons to do this which I wasn't going to go into. Suffice it to say that the current situation is one where the building I live in suffers under the tyranny of the majority of the larger building. So what is being sought is genuine control...
                      25-01-2022, 20:24 PM
                    • Reply to Enfranchising from a company I'm already a member of.
                      by Andrea Cunningham
                      There is already no ground rent collected - so as I understand it the value of the freehold might be quite low anyway.

                      If this is all done by negotiation then it is a moot point regardless, and it brings me back to what I was actually asking about, which is how to fairly and equitably split...
                      25-01-2022, 20:10 PM
                    • Reply to Enfranchising from a company I'm already a member of.
                      by Macromia
                      That potentially raises an interesting question about what happens to any money that needs to be paid for the enfranchisement.
                      At the moment payment is handed over, all those in the block being enfranchised would presumably cease to be members of the company - so wouldn't be entitled to any share...
                      25-01-2022, 19:40 PM
                    • Reply to Enfranchising from a company I'm already a member of.
                      by Macromia
                      That may not be your intention, but it definitely seems like you haven't given proper consideration to what enfranchisement would involve.

                      What do the leases specifically say about what is included within service charge/maintenance costs and how service charge costs are to be split?...
                      25-01-2022, 19:25 PM
                    Working...
                    X