absentee Freeholder

holsum

Urgh this is never endless

So I've found another flat to buy, been through the negotiation stage and the vendor has today accepted my offer. She mentioned at the viewing that they have an absentee freeholder and she hasn't been paying any ground rent for years.

The person upstairs from her has just sold through the same estate agent so the ea is aware of what to do about the absentee freeholder situation. She also mentioned that she was in discussion with the person upstairs about buying the lease.

Has anybody been in this situation, I'm starting to worry now, as if there isn't a freeholder how do I increase the lease, what is the mechanism for this.

rrwfotr

Hi go here:

http://www.lease-advice.org/newintro.htm

it's got loads of advice and information.

Basically you can go to court and get the lease extended if required if you can't get hold of the freehikder. Also Who is paying for the buildings insurance/up keep of common areas. I would be very carefull when buying a place without any buildings insurance you could move in and their could be a fire etc and you would be in serious problems.

holsum

It's a masionette so there aren't that many common areas the flat is in pristine condition. I guess the front garden is the only real common area whoever goes out to mow the grass just does the other persons side. I'm not sure about the buildings insurance side of things.

holsum

Anyone had an absentee freeholder?? Anyone ?? I've already pulled out of one purchase because of a dodgy survey, At this rate if I have to go through this process again and pay to find out important information down the line I won't be able to afford to move out and will be living with my parents for ever!!!! :eek:

hazeyj

If the sellers cant provide a current copy of the building insurance for your mortgage company then they wont release the money. Do the sellers know who the freeholder is? :A

Ian_W

holsum,
Wouldn't get into too much of a lather about it ATM. Would try and find out from the neighbour about the buildings insurance and common areas [if they're under the same roof - the roof could be a shared responsibility] and whether they had any probs with mortgage, sale or insurance issues.

holsum

I don't think the new person upstairs has moved in yet, but if they have is it okay for me to just knock on their door and start giving them 20 questions? is that the done thing?

or shall I direct these questions at the EA and vendor first?

Ian_W

Sorry, from the way you described the lawn being mowed I presumed they had moved in. EA and vendor in that case, though if I'd just moved in I wouldn't mind meeting my potential new neighbour or answering a few of their concerns from my recent experience [don't know where you got 20 questions from, about 3's the most I can see!!].

dander

I don't know what happens nowadays, but I tried to buy a flat in 1993 which had an absentee freeholder - I couldn't find a mortgage company prepared to lend money unless the freeholder could be found, and ended up having to drop out of the purchase. Shame. It was a lovely flat.

holsum

hazeyj wrote:

If the sellers cant provide a current copy of the building insurance for your mortgage company then they wont release the money. Do the sellers know who the freeholder is? :A

I found out today that my new soon to be neighbour (he is due to move in this week) ended up taking out buildings insurance for both flats. He used the same EA as my vendor and the EA has said he will pass on his phone number. Things are looking a little better... I think :rolleyes:

Bun

I am pretty sure my brother was in this situation. I think that he just had to get an indemnity insurance out to cover any costs if the freeholder turned up expecting several years back rent. The website recommended is good (the leasehold info one).