Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Lukemjp
    • By Lukemjp 8th Jun 17, 10:43 PM
    • 3Posts
    • 0Thanks
    Lukemjp
    Leasehold - Management company issues
    • #1
    • 8th Jun 17, 10:43 PM
    Leasehold - Management company issues 8th Jun 17 at 10:43 PM
    Hey all,

    I've got a question for you all any help you can give will be great. Basically I have had an offer accepted on a flat about 4 months ago and have had a couple of issues with it going through. I know have consent to knock down the wall, however the lease for the flat I'm buying is going to be extended upon completion the issue being this will then make the lease on the flat longer than the lease the management company hold.
    Does anyone know how much of an issue this will cause going forward?
    Is it essential to get something resolved before completing the purchase?
    The management company have already taken a few months over he decision and haven't got back about a potential clause?

    Any advise is muxh appreciated.

    Many thanks

    Luke Prestoe
Page 1
    • G_M
    • By G_M 8th Jun 17, 11:38 PM
    • 40,113 Posts
    • 45,820 Thanks
    G_M
    • #2
    • 8th Jun 17, 11:38 PM
    • #2
    • 8th Jun 17, 11:38 PM
    Sorry - this seems a confused question
    ...... I know have consent to knock down the wall,
    Is this relevant to your question, or just superfluous detail?

    however the lease for the flat I'm buying is going to be extended upon completion
    Do you mean the current ower is extending the lease so you will be buying a longer lease than the current one?

    Or YOU plan to extend the lease 'upon' (ie after) you have bought the existing one?

    the issue being this will then make the lease on the flat longer than the lease the management company hold.
    1) what has the management company got to do with the flat's lease? I assume they are appointed by the Freeholder to .... errrr.... 'manage' the building?
    2) If you mean the freeholder, (not the management company), then how can the lease they hold be of a different length - there is only onw lease for the flat. You are buying it (and maybe extending it).


    Does anyone know how much of an issue this will cause going forward?
    As the issue is unclear it is impossible to answer

    Is it essential to get something resolved before completing the purchase?
    It depends what you are hoping to achieve
    The management company have already taken a few months over he decision and haven't got back about a potential clause?
    'Clause'? What clause?
    Originally posted by Lukemjp
    I suspect you need a better understanding of what you are buying and what you want to achieve.

    If you are doing your own conveyancing - stop!

    If you have a conveyancer working for you, make an appointment, go in, and get things explained to you.

    (hope you're not using an online conveyancer.....)
    • Lukemjp
    • By Lukemjp 9th Jun 17, 10:28 AM
    • 3 Posts
    • 0 Thanks
    Lukemjp
    • #3
    • 9th Jun 17, 10:28 AM
    • #3
    • 9th Jun 17, 10:28 AM
    Thanks for the quick reply.

    Ignore the first part about the wall as that is sorted.

    The extension of the lease will be paid for buy the seller but they require the money from the sale of the flat to be able to extend. So I will be buying it with a longer lease.

    Basically my solicitor has informed me that the management lease they have with the landlord will be shorter than my extended lease on the flat. So the main issue is who will take ownership of the flats when the management companies lease runs out?

    The clause is something that my solicitor tried to put into the lease on my flats extension. So therefore it will say that it will be the landlords responsibility if the management company do not renew their current lease they hold.

    Hope this helps.
    • eddddy
    • By eddddy 9th Jun 17, 1:45 PM
    • 4,815 Posts
    • 4,454 Thanks
    eddddy
    • #4
    • 9th Jun 17, 1:45 PM
    • #4
    • 9th Jun 17, 1:45 PM
    Basically my solicitor has informed me that the management lease they have with the landlord will be shorter than my extended lease on the flat. So the main issue is who will take ownership of the flats when the management companies lease runs out?

    The clause is something that my solicitor tried to put into the lease on my flats extension. So therefore it will say that it will be the landlords responsibility if the management company do not renew their current lease they hold.
    Originally posted by Lukemjp
    It's a good question! (But perhaps the question needs clarification.)

    So the flat has a tri-partite lease - between leaseholder, freeholder and management company...

    - The management company covenants to maintain the building
    - The freeholder probably covenants to do almost nothing


    If the lease is extended, the extension will be a 2 party agreement - between the leaseholder and the freeholder....

    - so nobody will be covenanted to maintain the building in the extension period.

    So your solicitor is trying to get a clause added to the extension, that makes the freeholder covenant to maintain the building.


    I too would be interested to know the outcome, as I was recently looking at a flat with a tri-partite lease.
    Last edited by eddddy; 09-06-2017 at 1:48 PM.
    • Lukemjp
    • By Lukemjp 9th Jun 17, 7:59 PM
    • 3 Posts
    • 0 Thanks
    Lukemjp
    • #5
    • 9th Jun 17, 7:59 PM
    • #5
    • 9th Jun 17, 7:59 PM
    Yes that's exactly it. He was to put a clause in place so someone takes ownership when there lease expires, or to get them to extend there current lease.

    The issue is this is holding everything up and has done for several months already as they just haven't given an answer on either.

    If we carry on without something in place I'm thinking is this just going to be a future problem?

    Any help or information is greatly appreciated.

    Thanks
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

322Posts Today

3,814Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin