HELP HELP - Freeholder issues when buying a flat

LoopyLuna_2

Hi

I really need some advice as I am completely stuck on what to do. We are buying a leasehold repossessed flat.. all was going well untill my lawyers told us 3 things

1) we were told that the massive back garden was communal, the management company are saying its not.

2) The freeholder doesn't exists, and the management company have been dissolved. Therefore this has cause a whole range of problems.

- there is a clause in our lease that says no animals I was assured by the EA that this would be "no problem" and that they checked. Stupidly I didn't get this in writing as I did at that point trust the EA (ha).

- The rather large problem is that if there is subsidence on the house we cant claim anything because only the freeholder can do it !

- So the clauses in my lease state that if anyone did buy the freehold (god knows how since the only people we have as a contact are the previous owners and they are in Australia ). I would have to abide by that clause. Also the ground rent ext will be 0 untill someone buys the freehold then they basically have us up to random.

I am basically going to have a nervous breakdown, can we drop our offer ?
we are nearly 2 weeks to complete and my lawyer is saying what do you want to do ?

Help, as I love this flat ! and I will have to paid for all of this for nothing legal fees ext.

Doozergirl

If the freeholder is absent and the management company has been dissolved then I do believe that a mortgage lender will not lend? The flat is greatly devalued by that problem.

G_M

LoopyLuna wrote: »

Hi

I really need some advice as I am completely stuck on what to do. We are buying a leasehold repossessed flat.. all was going well untill my lawyers told us 3 things

1) we were told that the massive back garden was communal, the management company are saying its not. never mind who told you what. Check the lease. The answer will be there.

2) The freeholder doesn't exists, and the management company have been dissolved. Therefore this has cause a whole range of problems. By 'not exist' you mean absent? Yes, it would. Check here to see what leaseholders can do in this scenario.

- there is a clause in our lease that says no animals I was assured by the EA that this would be "no problem" and that they checked. Stupidly I didn't get this in writing as I did at that point trust the EA (ha). Getting it in writing from the EA would not change the terms of the lease! No animals would still mean no animals! Whether anyone would enforce this (esp if your animal is a goldfish) is another question. Esp as your freeholder is absent!

- The rather large problem is that if there is subsidence on the house we cant claim anything because only the freeholder can do it ! True. Plus even with an active freeholder, this would be an issue. Cost? Insurance? Mortgage availability? Disruption to your life while repairs are undertaken?

- So the clauses in my lease state that if anyone did buy the freehold (god knows how since the only people we have as a contact are the previous owners and they are in Australia ). I would have to abide by that clause. Also the ground rent ext will be 0 untill someone buys the freehold then they basically have us up to random. No. Whoever owns/buys the freehold does not alter the terms of the lease. The clauses don't/can't change, nor can the ground rent.

I am basically going to have a nervous breakdown, can we drop our offer ?
we are nearly 2 weeks to complete and my lawyer is saying what do you want to do ? 2 weeks to Completion or 2 weeks to Exchange? If you have already Exchanged, nothing you can do!

Help, as I love this flat ! and I will have to paid for all of this for nothing legal fees ext.

You love this flat? You have a pet but aren't allowed one. There is no garden for the pet to cr*p in, the house has subsidence, there is no way to manage day-to-day maintenance let alone the major repairs needed and you still love this flat?

Walk away.

LoopyLuna_2

This is the problem I went to the EA got the EA to double check before I proceeded with legal action ext they def confirmed said yes about animals and garden and have even advertised it as a communal back garden !! surely this is illegal ???? or EA allowed to mess around with peoples lives,make things up on the spot ext . Thats the thing what the lease states and what he EA states are different
Sorry I wasn't clear about the substance, there is none but I used that as a example for if anything goes wrong structurally for the house, insurance ext.

No actually there is no freeholder the property got repossessed ,then there was a freeholder management company looking after the building but ... they have dissolved. and my lawyer is saying that basically there is no freeholder, and when I asked about buying it, the EA/lawyer said that they didn't know who had it

the service charges aren't stated in the lease, so my lawyer has said none knows what is is ? although the ground rent is stated ... so ?

I cannot believe that I have lost £700 because what the EA told me was false. why do I have to suffer for their mistake ??? I know no one will be there to enforce it but hey Im paying a lot of money for my own place.

I dont even know about the mortgage whether they will still do it ? I am a 1st time buyer.

I am at a loss. No contracts signed 2 weeks to exchange. So can cut my losses but I cant believe that this can happen ???!!! really gosh I must be so naive =/

any other advice ?
(ps thank you for all help so far)

Fire_Fox

Nice attitude.

A leasehold flat is not your own place, you own the right to occupy the inside space but you do not own the building. It's completely irrelevant what the estate agent said, they are not your superior landlord and they do not enforce the clauses in the legally binding contract you are proposing to sign. It is unfair on your neighbours to knowingly breach a covenant in your long lease, many people are allergic to pets, and it is unfair on your pet(s) to put them in a situation where you may have to rehome them.

If your freeholder has gone bust the crown probably owns the freehold. Just because you have already paid a few hundred pounds out is not a reason to throw good money after bad! If the flat has been valued with the garden you will need to inform your lender who may need to revalue the property.

LoopyLuna_2

Fire fox: Personally I don't care for you attitude either, but I don't consider that relevant or helpful. I am on here to ask for advice, nothing more.As you can probably tell Im slightly stressed at the moment, I am a first time buyer in a extremely difficult situation and I don't need personal comments,just helpful ones.

So addressing your further points.

I do realise that having a animal may have been a issue I got them to check with the "free holder" before I proceed.Why would I waste everyones time, my money, energy on pursuing a flat were animals are not allowed... They said that the freeholder had agreed to pets being ok, please consider also that the animal (it a cat) has to be kept inside because she has 3 legs and very old. The animal would not be occupying common areas only my flat. And if anyone had a cat allergy of course I would for warn them before them entering my flat. I would have kept renting if I even thought EA can say anything.... then say we made it all up and nothing we tell you is legally binding. I understand that they will have disclaimers which voids them of any responsibility.Ethically wrong ? they said they contacted the freeholder and confirmation this was fine... as the freeholder doesn't exist , this was ... made up ?
It do believe it is revenant what the EA said as £700, that's a lot for a amount on money to lose through no fault of my own, I proceed on what I was told by the EA, it like them selling a 3 bedroom flat 2 week due to exchange they say actually its only 1 room sorry ! Luckily my lawyers are quite sharp, and at least I can have them on my side.

However the point about the garden is useful, as I didn't consider that and its effect the valuation, I will speak to the revenant people.

Fire_Fox

The estate agent is exactly that an agent they are in no way party to your contract, therefore you cannot use this as an excuse for breaching your long lease, therefore it is not relevant. Rightly or wrongly you haven't got the opportunity to debate whether your three legged cat should or should reasonably be allowed to live in that flat, it's against the terms of the lease and you risk being taken to an LVT. Your neighbours may take the line that a three legged indoor cat paves the way for a four legged outdoor cat or dog, what will you do then?

You may think I am being unhelpful, I am trying to get you to face facts as I live in a leasehold property and am the veteran of a three year dispute with our (now ex) management company. I also know what happened in my parents block when someone decided to breach the lease by keeping a cat: you will probably lose the case and you will probably have costs lodged against you. I have an indoor rescue cat myself (also due to a health condition) and I would be devastated to find out I had to re-home him.

I do not think you are in an extremely difficult situation I think you are in an extremely fortunate one, that £700 you have 'wasted' has saved you wasting tens or even hundreds of thousands of pounds more on a property that does not suit your needs and is not worth what you offered.

Kaleidoscope1972

..walk away..in fact Id be running in the opposite direction personally

LoopyLuna_2

I understand there point first a cat then a dog ext (it goes on)its extremely frustrating. I just trusted the EA as I thought they were regulated (mine EA isn't I checked.I can't say for others) what they said was the truth.Yes they are a agent and not part of the contract but isn't what they did mis selling about garden/cat. I know what they said doesn't effect the contract, but what the contract says and the EA should be pretty similar no ? (Anyway this isn't the point, I was mostly trying to see if anyone else has had this happen before)

I don't think I have expressed my self very well in my ranting... let me clarify, Im not going to buy a place with no animals. Full stop.As I will no way will I sell my cat (yes I know what I sound like). As for the flat and its covents I have no intension on breaching them.

But I want to see if anyone has been in my situation before to see if I can appeal to anyone? about the clause (im assuming I cant absent LO) but forever hopeful=] ext.
Because of the complex nature of everything I doubt anyone has had this before but..

I suppose i should be grateful it turned out this way(still cant help but feel like I want to chuck something), its just a lot of time wasted. And when a freeholder is appoint I could check then, but all in all why wait. I doubt there is a long list of people wanting to buy this place so maybe I will pull out and see.

My cats a recuse cat and is one of the reason im moving/buying my own place ironically enough.

When people said buying a place was stressful, I believe they lied, its worse =]
So the majority of people say cut losses ?

thanks 4 all the advice so far

LoopyLuna_2

kaleidoscope1972 : I have to say that made me smile, and believe me at the moment that is as rare.

david29dpo

Only you can decide if it worth suing the agent. In an ideal world you should and win. Post 7 is spot on.