Sale of property has highlighted issues with lease

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    Sale of property has highlighted issues with lease



    I have a ground floor maisonette which is 1 of 2 maisonette's in the whole building. I am in the process of selling the property and the Buyers
    solicitors have raised some issues with the ground floor and top floor
    leases:

    1) No reference is given to who is responsible for the Roof or Foundation in either the ground floor or upper floor leases
    2) The Ground floor lease (my property) is a copy of the upper floor
    lease and some of the wording was not change correctly to
    ground floor and still refers to the upper floor. Example is keeping the upper floor in good state of repair etc. should be ground floor.

    Just wondering what are the options available to deal with this issue. Is it possible to cover this off through an amendment to the lease or is it more complicated than that.

    Your advice would be much appreciated!!
    Thanks

    #2
    What has the freeholder said ?. The lease can be changed with agreemenmt of all parties, (some minor changes were made to mine when I first bought the property via a Deed of Variation).

    LVT's can also order changes without agreement on both sides for obvious defects.

    Andy
    Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

    I do not accept any liability to you in relation to the advice given.

    It is always recommended you seek further advice from a solicitor or legal expert.

    Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

    Comment


      #3
      Literally just found via a letter this morning, so not contacted the freeholder yet. It is a management company and they generally are pretty good.

      The Buyers solicitors are saying that the best course of action is to buy the freehold and then grant a new leases for both the upper and ground floor. Seems a bit overkill!!

      Comment


        #4
        Originally posted by sanxo View Post
        Literally just found via a letter this morning, so not contacted the freeholder yet. It is a management company and they generally are pretty good.

        The Buyers solicitors are saying that the best course of action is to buy the freehold and then grant a new leases for both the upper and ground floor. Seems a bit overkill!!
        Well..you cant just simply 'buy' the freeholder (and it could cost many tens of thousands) anyway, you can RTE in conjuction with other leaseholders.

        It may well be in everyones interest to get leases changed and freeholder (and other leaseholders) will be agreeable.

        Andy
        Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

        I do not accept any liability to you in relation to the advice given.

        It is always recommended you seek further advice from a solicitor or legal expert.

        Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

        Comment


          #5
          I think you need to have a quiet word with the conveyancer who acted on the purchase suggesting he pays to put things right.

          Comment


            #6
            Or simply exercise the right to manage and ensure that the articles allow for the the funding of works not recoverable under service charge are dealt with by contribution to your RTM company ie
            Pay RTM company ( owned by the two leaseholders) for roof and foundation
            Pay SC for everything else.

            It can all be held in the same account and be on the same bill

            SC for
            25-3-12 to 24-3-13 £500
            Building fund for
            25-3-12 to 24-3-13 £100
            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


              #7
              Originally posted by Lawcruncher View Post
              I think you need to have a quiet word with the conveyancer who acted on the purchase suggesting he pays to put things right.
              You can agree to vary the leases with the freeholder or both LH's apply to the LVT to do so,and as above, ask that your conveyancer pay all parties legal costs to do so...

              But perhaps get another firm to word the variation...
              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


                #8
                Dear All,

                Firstly, many thanks for your repies!

                I would have thought that the freeholder and the other LH would be ok with varying the leases, as it is in everyone's interest. Especially as I know that the other LH is planning to sell shortly.

                Is this a straight forward to vary the leases and generally how long does it take. Clearly will not use the same solicitors, I originally used and will be speaking with them tomorrow morning.

                Thanks again

                Comment


                  #9
                  It might not be in the freeholder's interest as then he is contractually lumbered with repairs, rather than a statutory duty to repair. And both of you have to agree to reimburse him for those costs as a service charge.

                  The average well adjusted FH would agree, but they are not as common as we might hope.
                  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


                    #10
                    My thinking was that the responsibility to repair / maintain the roof / foundation should be responsibility and at the cost of both the LH's.

                    Currently the roof / foundations do not fall within anyone's remit. This property is a very long lease with 926 years left to run.

                    Is this a complicated issue getting the leases varied if all the parties agree or is getting the agreement the difficult part?

                    The bazzare thing is that I have re-mortgaged a few times with different solicitors and no one has picked this up.

                    What would you recommend by best course of action is?

                    Comment


                      #11
                      Aha..'should' doesnt mean 'is'.

                      It is very important to make sure the whokle property is covered repair wise, most of us leaseholders will go through one lot of roof repairs during our leasehold.

                      If both parties agree, a variation is quite simple, a Deed of variation is drawn up, both parties sign and a copy is lodged with Land Registry, I had one done when I first bought my property, although now about 14 years later is has thrown up some strange errors (my LL thought that the deed changed the ground rent and had been overcharging me for many years, also it prob should of corrected other 'faults' in the lease such as there is no mechanism to recover driveway repair costs, an issue..but not as important as your roof !).

                      Even without agreement from FH, I would of thought an LVT would be sympathetic to allowing a change so someone is obliged to do roof repairs.

                      Andy
                      Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

                      I do not accept any liability to you in relation to the advice given.

                      It is always recommended you seek further advice from a solicitor or legal expert.

                      Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

                      Comment


                        #12
                        Thanks Andy.

                        When the original lease for the ground floor was drawn up, it was copied from the upper floor and it states that the ground floor is responsible for the repair and maintainance of the upper floor.

                        Could this also be removed or varied at the same time. Also typically how long would it take to vary the leases.

                        Thanks again for your posts!

                        Comment


                          #13
                          Currently the roof / foundations do not fall within anyone's remit.
                          Well they do the freeholders; he still has a statutory obligation to repair,
                          the omission from the lease only means that
                          a: he can't recharge the cost
                          b: the standard of repair is less certain than if spelled out in the lease

                          That's why they passed muster earlier.


                          Well variation is the belt and braces approach either voluntarily between the 3 of you or if the FH declines which they might ( see above post) by application to the LVT, This could cost about £2k each once finalised and lenders approval agreed etc.

                          That's why RTM ( with specialised clauses) is a cheaper option and allows you the saving of the current agents fees by taking on the work yourselves ( or if it works keep them on).
                          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

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