Freeholder bankrupt - trying to sell flat

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

    Freeholder bankrupt - trying to sell flat

    My wife owns a flat (leasehold) in a converted house of three flats, and it has 76 years left on the lease. We've recently put the flat on the market and had a good offer for it on condition of extending the lease.

    We started to investigate this and found out that the freeholder was made bankrupt in 2012 - current status of bankruptcy is Discharge Suspended Indefinitely.

    I've contacted the official receiver and been told that the freehold for our property is part of the bankruptcy estate and that they will be able to act as freeholder and extend the lease.

    I have a couple of questions:

    The flat is worth about 150,000. What would be a reasonable offer to ask for the lease to be extended to 125 years? Can we push our luck as I suspect the creditors have not seen much of their money returned to date?

    As the OR is acting as trustee, I understand that they will renew the buildings insurance when due. Can we ask them to perform maintenance on the property as well? The ground floor flat has had a window broken for several years and we're worried that this might be causing issues with the building, not least that the window frame looks like it's rotting. Will the OR enforce the terms of the lease, which require the flats to be kept in good order, and get this fixed?

    Should we tell the agent acting to sell our property what we have discovered? Should we not even think about trying to sell whilst this situation continues?

    Any general comments on this situation and is there a normal course of events? The OR says they normally dispose of these things three years after the bankruptcy order, so I guess in 2015 this will happen and a normal freeholder/leaseholder relationship should be re-established.

    Any thoughts appreciated.

    #2
    As a leaseholder for over 2 years , you have the right to seek a statutory 90 years lease extension = 76+90 = 166 years lease at peppercorn ground rent .

    The cost of lease extension is governed by a compensation formula which includes 50% of marriage value and you can obtain free guide from www.lease-advice.org

    I would guess the cost to pay for lease extension may be around 3% + legal cost. Try making an offer at 3K + legal cost for 90 years statutory extension and see what is the OR response.

    Comment

    Latest Activity

    Collapse

    Working...
    X