Absent freeholder

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

    Absent freeholder

    I'd like to buy a repossessed flat, one of two in a Victorian house. The lease has 89 years left. The freehold is split between two - one is the owner of the other flat, the other has disappeared.

    So just how bad a situation is this? What happens about repairs that the absent freeholder is responsible for either jointly or separately? How can the lease be extended if the freeholder can't be found - or suddenly turns up in an uncooperative mood? Rumour has it that his disappearance is linked to financial problems so if he does turn up he will be wanting to make money. The flat is a bit of a wreck. It has been on the market a long time, even though it is in a London hot spot.

    #2
    You might trace him, use an enquiry agent, and he may appreciate some cash for freehold. The 2 of you need the building maintained and you could exercise right to manage, with the Courts help and that takes control of virtually everything. You can sort out the freehold later.
    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


      #3
      Originally posted by leaseholdanswers View Post
      You might trace him, use an enquiry agent, and he may appreciate some cash for freehold. The 2 of you need the building maintained and you could exercise right to manage, with the Courts help and that takes control of virtually everything. You can sort out the freehold later.
      Thanks, that's helpful. Wasn't sure that right to managed applied to a building with on,y two flats. Presumably any expenditure could be recouped if the freeholder decides to emerge? The roof definitely needs attention. And could be set against the cost of a lease extension? The freeholder (who before the repossession was also a leaseholder) has attempted before to 'develop' the flat - ie split it into smaller units, but has twice had planning applications turned down (conservation area, much local opposition. Development requires velux windows in roof, which even if confined to the back would be visible and would not provide enough light anyway),
      so I am hoping any argument for a high marriage value based on development potential wouldn't wash with LVT.

      Comment


        #4
        There is no marriage value payable in 90 years statutory lease extension if the existing lease still has over 80 years remaining.

        Comment


          #5
          he cant develop a flat he doesnt own. you cant recoup costs of rtm and aall fuyure cost and works are the rtm,s, the job is stripped of the freeholders. they just get ground rent
          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

          Working...
          X