HELP! Freehold Company in receivership

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

    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

        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
        • 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
        • 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
          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