Two flats with resident freeholder with no lease...transfer of share of freehold?

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

    #16
    Originally posted by Gordon999 View Post
    Under the terms of your lease, do you need to pay to register any change of the mortgage lender or pay buildings insurance to the freeholder?
    The first is not mentioned in the lease and as far as I know no payment was made on purchase or subsequent change of lender.

    The buildings insurance is administered by the freeholder and the lease states that a half share of the cost is to be paid by the leaseholder to the freeholder.

    Thanks for your help with this. It does seem as if the solicitors have not fully understood the situation. I was just surprised that my solicitor seemed to agree with the buyer's solicitors that this would be highly desirable for the buyer...I couldn't see why but didn't like to argue

    Comment


      #17
      Originally posted by Gordon999 View Post
      1.
      (b) based on current peppercorn ground rent ( i.e NIL GR payment ), gaining a share of the freehold will not bring anymore benefit compared to present status as leaseholder.
      Well not entirely true in this case. I think the buyer believes that acquiring a share of freehold enables them to gain control with their neighbours.

      While that is often true, in this case, and where I agree with you, and where the OP is stuck, is that as the freeholder is also in control of the other flat, the "SOF" leaves them out of pocket, but in no more control that they currently are.

      With no right to acquire the freehold, and a freeholder who is hardly going to sell it and receive all the ensuing grief, the purchaser may well as have asked for the moon.

      With cheese on top!

      As there are two flats in the building they could look at getting an LVT manager appointed, but that is not easy where there is no lease, and needs specific advise.

      If that can be achieved then they can return to the market in due course.
      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

      Comment


        #18
        Originally posted by Faloola Chong View Post
        Thanks for your help with this. It does seem as if the solicitors have not fully understood the situation. I was just surprised that my solicitor seemed to agree with the buyer's solicitors that this would be highly desirable for the buyer...I couldn't see why but didn't like to argue
        Well I know why as posted. In principle acquiring a share freehold seems to be the answer,and generally is seen as valuable ( as well being as actually being so in some cases).

        I think they have not thought it through.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


          #19
          LVT = Leasehold Valuation Tribunal? Sounds serious

          I'll wait and find out if there's any news on the matter tomorrow. I believe the buyer's solicitors were not aware when they gave this ultimatum that the other flat did not have a lease, which as discussed does have important consequences. I can't imagine that they will just back down on this but you never know...

          Comment


            #20
            Originally posted by Faloola Chong View Post
            LVT = Leasehold Valuation Tribunal? Sounds serious

            I'll wait and find out if there's any news on the matter tomorrow. I believe the buyer's solicitors were not aware when they gave this ultimatum that the other flat did not have a lease, which as discussed does have important consequences. I can't imagine that they will just back down on this but you never know...
            In theory yes but it is occasionally laughable in a Dad's Army way. They are generally very helpful to the lay person.

            See here http://www.lease-advice.org/publicat...nt.asp?item=18

            The important thinking is to try and understand what they are trying to achieve and that way you can work through it with them, so that they can understand where they may be in error. Nothing like stroking a buyers ego/just being decent about it and coming to a conclusion together to keep the deal alive.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #21
              I agree with Lawcruncher that the buyer's solicitors are being stupid.

              ("To impose in any Lease of the Ground Floor Flat...covenants..in similar terms to those..of the Lease...and until such a Lease is granted the Landlord will be responsible for the performance and observance of such covenants").
              So there is a landlord's covenant to comply with equivalent covenants as if a lease existed so that can be enforced by the buyer from OP. So what are they on about?
              RICHARD WEBSTER

              As a conveyancing solicitor I believe the information given in the post to be useful (provided it relates to property in England & Wales) but I accept no liability except to fee-paying clients.

              Comment


                #22
                Thanks to everyone who's helped straighten this out for me

                Now I just have to convince both solicitors...wish me luck

                Comment


                  #23
                  The Landlord's solicitor is now to ask the purchaser of the Landlord's flat whether they intend to buy the freehold or just a leasehold interest in the flat. You'd have thought (i) they'd have ascertained that on instruction and (ii) the answer would be rather obvious

                  These things move in mysterious ways indeed

                  Comment


                    #24
                    If the purchaser needs a mortgage , then the property would need to be sold under leasehold title.

                    Comment


                      #25
                      That's what the Leasehold Advisory Service told me, but I am certain that the landlord has a mortgage on the property. Unless this has changed recently?

                      In any case, both buyers are cash buyers

                      Comment


                        #26
                        UK mortgage lenders will only offer loans on flats with a maintenance contract which is why leasehold title is the norm in E&W.

                        You can check if your freeholder has a mortgage charge on the freehold title by buying a copy from Land Registry and also identify the mortgage company.

                        Comment


                          #27
                          Originally posted by Faloola Chong View Post
                          That's what the Leasehold Advisory Service told me, but I am certain that the landlord has a mortgage on the property. Unless this has changed recently?

                          In any case, both buyers are cash buyers
                          Well I am not so sure they are right. They advise on a general basis and would normally be right.

                          In this case however the freeholder owns a two storey house part of which is subject to a lease of a separate dwelling. While not the stuff of every high street lender, it is entirely mortgageable.
                          Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                          Comment

                          Latest Activity

                          Collapse

                          • Reply to Variation of lease
                            by sgclacy
                            A ground rent of £150 per annum increasing by 50% every 10 years until it reaches £3,844.33 with 2 years to go before it makes its first doubling would cost around £7,600 plus 0.33% of the value of the flat to have a statutory lease extension

                            One of the difficulties in proposing any...
                            13-08-2020, 01:08 AM
                          • Variation of lease
                            by scampicat
                            I own a flat with a lease of 125 years starting from 2012. The ground rent is at present £150 pa, but increases as follows every ten years: £225... .£337.50.... 506.25.... 759.38.... 1139.06.... 1708.59.... 2562.89 ....3844.34. There are no more increases after eighty years. I am considering a variation...
                            25-02-2020, 08:57 AM
                          • FH forfeits and sells before 6 months window for relief?
                            by Loque
                            999yr Long lease commercial, lessee in breach, S146 served, S146 expires without being complied with, FH re-enters and changes locks.

                            Now... LH can go to court to claim relief from forfeiture for the remediable breach, usually within 6 months or so. BUT lets say once FH has re-entered he...
                            12-08-2020, 13:26 PM
                          • Reply to FH forfeits and sells before 6 months window for relief?
                            by sgclacy
                            Once the Land Registry have closed the title and a new lease granted there is no redress for the lessee seeking relief from forfeiture

                            The land registry will write to any party shown in the charges register and the tenant before closing the title - therefore illustrating the need to make...
                            13-08-2020, 00:03 AM
                          • Reply to RTM - Admin Fees Charged by Freeholder
                            by Gordon999
                            Its in section 98 of Commonhold &Leasehold Reform Act 2002.

                            Where a person who is—

                            (a)landlord under a long lease of the whole or any part of the premises, or

                            (b)party to such a lease otherwise than as landlord or tenant,

                            has functions in relation...
                            12-08-2020, 22:27 PM
                          • RTM - Admin Fees Charged by Freeholder
                            by chris1544
                            We have RTM in place for our two flat building. Recently the other leaseholder put in a request to the RTM company to install an air vent. I duly wrote to the freeholder, notifying them of our intention to grant approval for the works, giving them the statutory 30 days notice.

                            They have...
                            12-08-2020, 11:04 AM
                          • Reply to RTM - Admin Fees Charged by Freeholder
                            by Lorimer
                            There isn't much case law on this but even when an RTM is in place and it is the RTM that is responsible for dealing with consents, I believe the freeholder CAN charge a reasonable admin fee simply for the freeholder's time in reviewing the consent application. This is because the RTM company cannot...
                            12-08-2020, 20:33 PM
                          • Late ground rent payment charge & legal fees no warnings
                            by KingstonBee
                            Wonder if you can help... This week I have received a Court Claim form pack with what seems to include a ‘particulars of claim’ and ‘lease’ for ‘outstanding arrears of Ground rent and insurance’.

                            Now this is a huge shock as I’ve not received any letters at all, no emails or phone...
                            10-06-2020, 20:13 PM
                          • Reply to Late ground rent payment charge & legal fees no warnings
                            by Stew
                            sounds like a major win
                            12-08-2020, 20:22 PM
                          • Can I let this freehold indefinately ?
                            by Boab
                            Is there any reason why I cannot let a freehold flat on a two flat maisonette where there are two freeholders with a deed of covenant between the two to cover such issues as maintaining the property? There appears to be nothing in the covenant restricting renting my property out and it’s been done...
                            10-08-2020, 06:12 AM
                          Working...
                          X