Long lease transfered

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    Long lease transfered

    I am the freeholder of two long lease flats.

    The leaseholder (who held both long leases) over a month ago sold both flats as a pair at public auction.

    Both leases where in arrears of ground rent.

    I have had no notification of the sales or request to assign.

    What should I do?, continue to request ground rent from the seller of the long lease.Also is the purchaser allowed to use the flats curently?

    #2
    Buy a copy of the leasehold titles from Land Registry Online to see if the transfer of leases have been completed and registered .

    Comment


      #3
      the biuyers are liable for the arrears which run with the land. No doubt the buyers solicitors will serve a Notice of assignment within a month or so of the purchase completing. I suggest that at that point you reply to the effect that ground rent is owing and this must be settled. There seems to be a difference of opinions as to whether one can properly refuse to acknowledge receipt of notice to assign if there are arrears owing, with some taking the view that even if there are arrears owing it is correct to acknowledge the notice subject to arrears. But for practical purposes its a good time to highlight any arrears and worth pointing out that no enquiries were raised as would be usual as to arrears and if the buyer did buy at auction the sales contract will have specified that the buyers takes subject to any and all arrrears at its own expense.

      Comment


        #4
        Gordon999,

        I have just purchased and the new owner is registered at Land registry, the lease states

        Not to assign the whole of this lease unless the tenant has first
        (a) paid to the LL and rent, service charge, insurance rent or other sums payable under this lease which have fallen due before the date of assignment and

        also

        within one month provide a certified copy of transfer

        pay the LL registration fee

        What can I do?

        Comment


          #5
          Contact the transfer team at Land Registry to point out what has happened and demand to know which solicitors did the conveyancing and report them to the Law Society.

          You can also google search for online legal firm offering services to recover ground rent and service arrears .

          Comment


            #6
            Originally posted by Gordon999 View Post
            Contact the transfer team at Land Registry to point out what has happened and demand to know which solicitors did the conveyancing and report them to the Law Society.
            the law society arent going to be interested. they are only concerned with losses or alleged losses of the client of the solicitor in question. If you want to bring it to a head, write to the buyers claim what is owed, tell them that they have bought subject to tyhe arrrears and that they should talk to their solicitor as you intend suing for the moneys owing if they havent coughed up within 14 days

            Comment


              #7
              The first issue is the date of the leases.

              If they are granted after 01-1-96 the assignees are not responsible for the arrears to the freeholder, and the freeholder can pursue the former owner, including for forfeiture and costs. This puts the new owner is some peril and they will look to their lawyer to ensure that they are protected from this, or as is common in such cases the contract for sale is that they buyer is responsible for all such arrears. They then pay in order to protect their interest.

              The second issue is if the leases are pre 1996 and there are no other clauses to the contrary in the lease, then you have a choice of

              A declining to accept the notices, which cause a problem for the buyer and his mortgagee, and forces them to reveal that they are liable for the arrears, or
              B accepting the notice and billing them. Just make sure that the amounts are properly calculated and are sent with the correct information ( recently updated as shown in my sticky) before you do.

              There is no real advantage to insisting on the licence to assign unless the terms are helpful to you or the assignee is going to prove difficult eg they are a buy let and hide type located at Mr Ping Yips newsagent box 33, Cambodia etc
              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
                As to the position of an assignee where rent and/or service charge is not paid see here: http://www.brethertons.co.uk/Content...e_v1_loRes.pdf

                The OP should note that no ground rent is due unless a section 166 demand has been made. I also wonder if he gave notice of his interest to the the ex-tenant.

                There is no question of a landlord "declining to accept" a notice of assignment. Even if made in breach of covenant, an assignment is a fait accompli.

                Comment


                  #9
                  Originally posted by Lawcruncher View Post
                  As to the position of an assignee where rent and/or service charge is not paid see here: http://www.brethertons.co.uk/Content...e_v1_loRes.pdf

                  The OP should note that no ground rent is due unless a section 166 demand has been made. I also wonder if he gave notice of his interest to the the ex-tenant.

                  There is no question of a landlord "declining to accept" a notice of assignment. Even if made in breach of covenant, an assignment is a fait accompli.
                  But it is common practice as it forces the issue as the receipted notice is a common requirement. I agree though that it is not insurmountable, it simply creates an administrative problem to be got round for the buyer, his mortgagee and conveyancer, and is normally effective in getting someone to react and solve the underlying issue.
                  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
                    Originally posted by leaseholdanswers View Post
                    But it is common practice as it forces the issue as the receipted notice is a common requirement. I agree though that it is not insurmountable, it simply creates an administrative problem to be got round for the buyer, his mortgagee and conveyancer, and is normally effective in getting someone to react and solve the underlying issue.
                    Buyers' conveyancers need to take a robust stance when dealing with mortgagees and landlords and their advisers.

                    Comment


                      #11
                      I agree, but its not uncommon to see conveyancing services ( lawyers or otherwise) insist on receipted notices as the lender insists on them. In general I have no problem in receipting a notice as its the right thing to do and good business practice but in most cases the only requirement is to serve a notice, and rarely for the landlord to receipt it.
                      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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