Shared freehold

mac2

Hello everyone

I'm a newbie, so forgive me if this topic has been raised before, but I'm wondering if anyone can give me thoughts on whether to take up my freeholder's offer to buy a share of the freehold. Currently I have a long lease (I extended it last year to 180 years) on my flat, which is one of two flats in a converted Victorian house. The other flat is owned by the freeholder.

My main problem is that the freeholder, who lives overseas and rents out his flat, does not fulfill his responsibilities, such as maintaining the property properly. He's virtually an absentee landlord and never gives me any written information. He has recently been remodelling his flat (knocking thru partition walls etc) but did not inform me of this even though my lease says I can't carry out any structural changes.

I've not taken legal action to get him to do what he should be doing because of the costs involved. Basically, I'm not sure if buying a share of the freehold, when there are only two flats, would give me any more power than I have now as, presumably, I'd still need his cooperation on issues such as joint works. Also, I'm not sure how much it would cost. Any thoughts would be appreciated.

sunnysea83

hi

Buying your freehold has its good and bad points. There is an organisation called lease who provide free advice to leaseholders. I am not sure of there number but their website is something like www.lease-advice.org.uk

The cost can vary from block to block, you would probably need a solicitor to do the legal side and a valuer / surveryor to do the valuation aspect. you would need to submit a notice of intention to purchase etc and the freeholder would send a counter notice with what they want for the freehold, if you cant agree within 6 months you can go to the lvt, they dont charge for the service www.rpts.gov.uk
Hope that helps a little

sunnysea83

has he offered you a 50% share or the whole freehold? if you have 100% of the freehold you would be responsable for arrange insurance, building works etc, you would also need to make sure you are aware of things like section 20 notices for work that costs over x amount etc

mac2

I think he's offering a 50% share, but I'm not sure what benefit it would bring me as the main problem is he's very lax in fulfilling his obligations eg organising and paying his share of joint works. Would having a share of the freeholder, rather than being a leasholder, give me any more leverage over him? If not, I'm not sure what I'd gain from the financial investment.

Entertainer

mac2 wrote: »

I think he's offering a 50% share, but I'm not sure what benefit it would bring me as the main problem is he's very lax in fulfilling his obligations eg organising and paying his share of joint works. Would having a share of the freeholder, rather than being a leasholder, give me any more leverage over him? If not, I'm not sure what I'd gain from the financial investment.

Yes it would. If you own a freehold then you can compel other leaseholders to meet their obligations, the ultimate recourse being a leasehold valuation tribunal when a charge could be placed on their property.

If you are just the leaseholder then you also have rights such as the right to buy the freehold and the right to manage the maintenance of the building.

As a part owner of the freehold you have more leverage and it would be a real plus point when selling. I would not want to buy a leasehold flat without owning the freehold. How much does he want for it? If he wants to sell it to you voluntarily then I don't think you have to go through all the nonsense about getting it valued.

Norroy

May I ask, do you have the top floor of the building ? If so, this could be a good opportunity to get the roof/loft space demised in your lease. This would provide a development opportunity for you or any future owner.

If you have the ground floor and there is a cellar, the same would apply. You would also find it easier to get any side/back extension done.

All in all, getting a S of Freehold is a good idea. But as he has come to you, you are in a strong bargaining position - so push for the best price possible and sort out the lease, as I have described above at the same time.