Selling but freehold problems

stattoma

Hi

Very grateful for any any advice on the following. Obviously I'm getting legal advice but it's slow in coming.

I sold my flat very quickly about 2 months ago. It's a conversion flat with me having the top floor. I own the share of freehold with the lady downstairs. She has stalled for over 2 months in signing over the freehold to my purchaser. I appear to have no legal way to compel her to sign the freehold over to the buyer - anybody have any experience of this?

Now the buyer and other freeholder have met. The buyer wants to rent out a room which the other freeholder points out is contrary to the lease. Sadly, despite me having rented out a room for the last 5 years, she seems to be correct. The lease includes a cause saying "the lessee will not permit the premises to be used for any other purposes than that of a single private residence in the occupation of one family only". If it's in the lease, then I guess I'm stuck with it? What's the definition of a family!?

More worringly is that the other freeholder wants to essentially vet potential purchasers before signing over the freehold. There is no way that I can have that. I don't see any way round this bar selling just the leasehold (which presumably means she will have no say in the sale but, on the other hand, will be less attractive to potential purchasers). Anybody any ideas?

Sorry, I know the likely response is to tell me to get my solicitor on it but I just wanted to know if anybody had experienced something similar. To compound matters we moved out to the other side of the country a month ago and every week is costing me about £200 in mortgage payments.

Yours hoping

Statto

ethank

Hi Statto.

When trying to buy a Freehold flat, I found out that most mortgage lenders will not lend on Freehold Flats because it gets so complicated. I lost the flat unfortunately. You can check which mortgage lenders will and will not lend on Freehold Flats by checking the Council of Mortgage Lenders Handbook at http://www.cml.org.uk/cml/handbook

Selling a leasehold only may in fact actually widen your pool of buyers, as people who need to mortgage will be able to buy it.

Good Luck.

stattoma

Thanks ethank, that's a little bit of a reassurance. So am I right in thinking that if I sell just the leasehold then there is no involvement from the other freeholder whatsoever? No papers to sign or other ways she can hold the sale up?

Thanks again

Statto

Ian_W

Hi statto,
I think you're getting into complex legal waters here - speak to the solicitor handling your sale, this is too case specific for general advice on a chat forum IMHO. You will need to anyway as I imagine to sell it leasehold may involve drawing up a new lease and will certainly change the way the solicitor needs to proceed - as well as your buyer.

If this route is possible without reference to the other freeholder [and I'm no expert but by no means sure it is] then it may be possible to put some pressure on her by pointing out that you also, remaining as joint freeholder, can make her life very difficult when/if she ever wants to sell in the future.

EdInvestor

Aren't there two things here?

-Two leasehold flats, one owned by you and the other by the lady downstairs

-One freehold of the whole building, jointly owned by the two leaseholders, you and the lady downstairs

Normally a leasehold flat and its share of the freehold would be sold together.It would be unusual for other leaseholders to have any say - or any veto - over the buyer of the leasehold/share of freehold of another flat in the building.

Check with your solicitor.

stattoma

Many thanks guys. I am still waiting for legal advice but I want to be as informed as possible myself.

The lady downstairs has a veto over potential purchasers by her insistence on meeting them before she is willing to sign the freehold transfer. Completely unreasonable in my opinion but there seems no way of persuading her otherwise. She is pressurising me into trying to sell my share of freehold to her which is equally unreasonable.

Grrrr.

silvercar

Did the lady downstairs vet you when you bought the property?

I would have thought that the solicitor handling your purchase of the flat should have pointed this out to you.

cattie

Although it was never put into practice, the lease of a Victorian flat I once owned stated that the freeholders permission was required for the assignment of the lease.

However, all l leaseholders in the street sold their properties when they wanted without seeking permission. The freeholder had no problem with this.

I think a lot does depend firstly on the wording of the lease & secondly on how relaxed & non intusive the freeholder is towards the property leaseholders regarding the terms of the lease.

You may be able to get some advice on your particular problem with the fellow freeholder from these people: http://www.lease-advice.org/newintro.htm

It's a government funded advisory service for leaseholders.

Hope you can get it sorted out. It's a bit of a rough situation for you to find yourself in. It sounds as if your fellow freeholder is a bit of a control freak in wanting to dictate to you who you can or can't sell your flat to.

Bun

Hi there, I can't help with the freeholder part, but when we sold our last flat, it was brought to our notice at the last moment that the clause for use was the same as yours. The flat above did not have this clause. The buyer wanted to rent out a room and didn't bother to tell her solicitors. What we did was a deed of variation for use, to bring it into line with the one above. Cost £400 pounds but saved me the sale. Both flats were leasehold and the freeholder just put up the ground rent for future years.
Maybe this is an option?

I agree too that freehold flats can be a pain and are generally (in my experience)no more expensive than leasehold. Maybe selling her your freehold may help?

stattoma

Sorry all - a quick update on my saga. My first sale fell through after the buyer met the other co-freeholder. I have now sold again but my solicitor has had no response from the co-freeholder (I am now living at the opposite end of the country so can't meet her myself). This has gone on for weeks. When she does respond, I suspect she will want to meet the new buyer. I think this is unacceptable - this saga could go on for years. My only option seems to be litigation to force her to sign. I would definitely win the case but it would take ages and cost a fortune (though she would probably capitulate). Before I threaten to sue her, I don't suppose anyone has any bright ideas? Sorry, I realise this is moving away from money saving advice ...

Regards

Ed

stattoma

PS Have now paid three months mortgage on an empty flat. Boo hoo.