Freeholder from HELL!

jjhamil

We are selling our house to a lovely couple - but they are having problems getting their flat exchanged.

In short, their freeholder is refusing to sign the licence they need to transfer the lease from them to their buyer. Without this, they can't buy ours.

Their evil freeholder is in dispute with the managing agents and trying to wrestle back control ffom them so he can get rid of them all together and manage himself (and of course, make more money).

None of this is anything to do with my buyers but the Freeeholder won't sign the transfer licence for our buyers until the managing agents transfer the lease to him - which of course they won't do. He says they owe him money - they say they will pay but he won't issue the bill so they don't know how much.

Our lawyers have pointed out the freeholder cannot reasonably withold consent on this matter - but he has dug his heels in and has refused to sign.

What on earth can we do to preserve the sale?

annie123

Awkward one this.
The freeholder will most likely have appointed the agents, so I'm assuming that he has given them notice for termination of the agreement. He will then have to go to court to get any monies he feels he is owed.

It does not make sense that he is withholding his signature on the lease assignment unless he feels/knows that the current leaseholders or the new owners to be, have anything to do with the management company, e.g. Does one of them work for it? Or did the leaseholders instruct this management company?

Is it a large block or a small house conversion?

A freeholder cannot with hold assigning the lease for the new owners, he can ask for bank references etc but this would only delay matters, not have the change of circumstances he wants.

The solicitors should be able to get him to change his mind, sounds as though he is just trying it on.
Your buyers EA may also have the details and be able to talk to him.

The sale could go ahead on the understanding that the new people are just buying aleasehold flat (their bank/BS will have to agree to it) with the freehold transfer to be agreed at a later date.

I would suggest that all leaseholders get together and buy the freehold over the next year or two, the guy sounds like a real a**e.
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jjhamil

Thank you Annie.
No, the new buyer is nothing to do with the managing agent and is finanically solvent - so the Freeholder has no reason to withold.
He has told our buyers he will only sign the consent for them if they get the managing agents to send him a letter saying they are forfeiting their lease (which of course they won't - and why should they?)
We feel he is holding us all to ransom.
He's quite famous in his own area / community so if it comes to it and he refuses to do the decent thing then we can always go to the papers!

jjhamil

Oh it's just a small house - two or three flats I think

annie123

jjhamil wrote: »

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He has told our buyers he will only sign the consent for them if they get the managing agents to send him a letter saying they are forfeiting their lease (which of course they won't - and why should they?)

forfeiting lease.....I hope you mean the management company and not the leaseholders.

Solicitors can take it to court but TBH by that time mortgage offers will have expired and the buyers at the bottom will have run a mile.

Your buyers solicitor could threaten to sue for costs for buying and selling in the hope that he changes his mind, but the solicitors will know that.

If its 2 flats in the building then your buyers can tell him they are going to enforce their right to buy the freehold, as he is not allowing them to move.
That may make him change his mind if he doesn't want to sell.

I'm sure he is just trying it on and over the next few days will calm down and see reason.

Fire_Fox

Point your buyers in the direction of this site:
www.lease-advice.org

LadyLawyer

The buyers' solicitor needs to get a bit firmer with the landlord. Threaten to sue him for breach of covenant under the lease and potentially the costs of the abortive sale. The freeholder is out of order here.

Meyamoo

I hate to say it, but I think your freeholder is not going to budge, despite any threats you make. 3 years ago, almost the identical thing happened to me at my flat when I wanted to sell it...my freeholder refused to sign the managing agents questionnaire, and after 4 months, the buyer got cold feet (quite rightly too), and pulled out.

The main grievance of my freeholder appears to be that she does not want me to profit from my property because she sold it for £40k in 1985, and she won't see any further money other than ground rent from it. I bought it in 2006 for £132k and would have sold in 2007 for £210k, had it not been for her obstruction. Then look what happened to the market in 2008...

I have been through the LVT on service charges with my freeholder (and I won), and am now going through the County Court (where again, it looks like the judge will rule against her again). Goodness knows how I will ever sell this flat after each of these cases, where I have always been ruled to be in the right.

I wish all the good luck with your sale. I for one know that after this experience, I will never buy a leasehold flat again. Believe me, there is nothing you can do about this kind of freeholder, they don't change, and by the time they have dragged out the process, your buyer is long gone.

leaseholdreform

Trafalgar Court Mundesley (london Land Securities) brought the freehold in 1999. Started housing patients from the Princess Diana
drug re-hab .

From then on until today the Leasehold Valuation Tribunal have been
involved, you can see the terrible condition of the building on Youtube.

Their are 32 flats in total, LLS own 24 the minority leaseholders own 8.Of these 24, LLS have taken 8 out of the service charge liability, because they are unfinished for over 10 years, LLS sold 13 flats to unknown names for £1 each,however they still remain registered at LLS Hampton address!

propertyman

It seems that the MA has a lease over the common parts (and structure ?), the freeholder retains the rest and individual flats have their own leases.

The landlord cannot unreasonably withold consent and therefore the advice is as given that as there are numerous cases supporting your right to assign, they would be foolish to do so.

As suggested your solicitor must make it clear that you will do so, but if they refuse then you have to decide if you wish to, bearing in mind the time involved may be many months, whether to invoke binding arbitration if the lease allows.

As this may take time there is no quick answer.

I would suggest that give that time you and other residents exercises the right to manage removing the constraint of the FH and the Agents Lease and vesting the management, and these issues in the hands of the residents. This in effect overrides the freehold and Management Lease.

Your agent may even if they are sensible and providing a reasonable service be retained as the RTM company's agent.