HELP! Freehold Company in receivership

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    HELP! Freehold Company in receivership

    I own a long term lease on a flat, (18 Grange Estate Middlesbrough TS6 8EJ ) within a block of four flats. I am having difficulty selling this flat because the freehold position is now unclear. The Company that owned the freehold has gone into receivership. The receivers are not interested in solving the problem as there is little real value to the associated freehold. My solicitor is contacting the “treasury solicitor” to resolve the ownership of the freehold but I am uncertain as exactly what is the process. I have asked lots of obvious questions but alas do not seem to be getting any straight answers. It has become apparent that not all the tenants and leaseholders will be interested in resolving this matter so will have to “go it alone”.

    Questions

    1. Who currently owns the Freehold
    2. Exactly what is the process my solicitor will have initiated?
    3. Can I expedite the process by contacting an appropriate person directly?
    4. Who in the end should own the freehold; Can I?
    5. Who would own it when i sold the flat, does the freehold go with it??

    #2
    What happened? Did your fellow lessees not pay their service charge?

    Comment


      #3
      Originally posted by b.d.hebbron@tees.ac.uk View Post
      I own a long term lease on a flat, (18 Grange Estate Middlesbrough TS6 8EJ ) within a block of four flats. I am having difficulty selling this flat because the freehold position is now unclear. The Company that owned the freehold has gone into receivership. The receivers are not interested in solving the problem as there is little real value to the associated freehold. My solicitor is contacting the “treasury solicitor” to resolve the ownership of the freehold but I am uncertain as exactly what is the process. I have asked lots of obvious questions but alas do not seem to be getting any straight answers. It has become apparent that not all the tenants and leaseholders will be interested in resolving this matter so will have to “go it alone”.

      Questions

      1. Who currently owns the Freehold
      2. Exactly what is the process my solicitor will have initiated?
      3. Can I expedite the process by contacting an appropriate person directly?
      4. Who in the end should own the freehold; Can I?
      5. Who would own it when i sold the flat, does the freehold go with it??
      Answers!
      1. The Company still owns f/r. Receiver's job on behalf of creditor, eg mortgagee (lender), is to dispose or wind-up to clear debts, but Receiver is not owner. Think of mortgagee repossessing and selling a defaulting borrower's house- that's what a Receiver can do, too.
      2. Treasury Solicitor involved only if Co. is liquidated and struck-off from Register of Companies at Companies House in Cardiff.
      3. No. It's technical, so let your sol. act- that's his/her job.
      4. You could, in theory, but only for whole block- NOT just one flat. Better if all four lessees join in asking Receiver to sell it to them jointly. If some don't want to participate, that's their lookout.
      5. If two/three/four lessees purchase f/r, each flat stays leasehold but each of them has % share of freehold. When lessee/vendor V sells flat [assuming that also owns share of f/r], a parallel Transfer of f/r (from V +other owners, to P + other owners) is necessary. This keeps f/r in names of current lessees. Neat, eh?
      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
        Hi,

        Administrators have the power to force sale of the asset to pay off the freeholders' creditors. As they are currently unwilling to accept that the freehold has much value, it may be advisable to obtain a freehold valuation of the property. I offer a freehold valuation service which may be of assistance. Please follow the following link for more information: http://www.proleagle.com/collectiveenfranchisement3.htm.

        They can then decide to serve you with a Section 5 Offer Notice, requesting you to purchase the asset. As leaseholders have a Right of Pre-Emption (i.e. right of first refusal), the administrators would need, by law, to serve the Section 5 Offer Notice on you and your neighbour first before disposing of the asset to a third party. This means it is most probable that your freehold is still owned by the same Company. By all means, check with the Lands Registry for further confirmation of this.

        Alternatively, you can serve the freeholder with Section 13 Initial Notice to kickstart the freehold purchase process.

        I hope this assists.

        Kind regards,


        CORINNE TUPLIN
        DIRECTOR
        PRO-LEAGLE
        www.proleagle.com
        CORINNE TUPLIN
        SOLICITOR
        PRO-LEAGLE
        www.proleagle.com

        ___________________
        Please note that any comments made are personal opinion and do not constitute legal advice.

        For Service Charge Disputes, you may wish to use Pro-Leagle's online Service Charge Dispute Analyser: http://www.proleagle.com/servicecharges.htm

        Comment

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