Freeholders blocking flat sale unreasonably

MiM

Can anyone help with a terrible problem my sister is having?

She is selling a flat in London which has a freeholders committee made up of three individuals who own flats in the same building.

The buyer has to submit references from his bank and employer to show he is capable of paying ground rent and fees.

He's done this but they still haven't approved the purchase - and now after it's dragged out for weeks he's threatening to pull out of the sale.

They're bringing up spurious reasons for refusing to sanction the sale.

Can anyone advise? Who can help? If she can show their refusal is unreasonable could she have a case against them?

Any ideas would be much appreciated.

satchmeister

We sold in a block that had similar requirements and this was essentially a formality to keep out the riff-raff and ensure the service charges etc could be paid. What are the 'spurious reasons'?

MiM

They're questioning a transaction on a bank statement and the way he gets paid. Trouble is he's already upset at the intrusion into his personal details and not prepared to continue the process. He's submitted to all requests and quite rightly feels enough is enough.

DVardysShadow

Perhaps she needs to put out the message that she is considering letting the place out. Perhaps a few viewings from a family who tkae a horse up the stairs to see if it could be accommodated? Any other theatrical ideas?

MiM

I don't think they could rent out either without the freeholders' permission.

Richard_Webster

Of course the members of this committee may have changed over the years but it does illustrate the importance when buying a "shared freehold" flat of talking to the people concerned before you buy to try to find out their attitudes to things and whether they are likely to be awkward further down the track.

pinkteapot

DVardysShadow wrote: »

Perhaps she needs to put out the message that she is considering letting the place out. Perhaps a few viewings from a family who tkae a horse up the stairs to see if it could be accommodated? Any other theatrical ideas?

If it was me selling and the sale fell through because of this, I'd be having a huge party to celebrate.

Sorry OP, no constructive advice. It's a lousy situation to be in for your sister.

MiM

Thanks all - Richard, do you know whether the freeholders could be liable if you could prove their decision to have been made on frivolous grounds?

satchmeister

MiM wrote: »

They're questioning a transaction on a bank statement and the way he gets paid. Trouble is he's already upset at the intrusion into his personal details and not prepared to continue the process. He's submitted to all requests and quite rightly feels enough is enough.

He has every right to be upset, if they are questioning bank transactions. Why have they got a copy of a bank statement? normally the bank would just issue a letter say X is able to pay Y and if any transaction is suspect the bank would be on to it (money laundering and all that).

The freeholders sound like a bunch of control freaks who think they should control who lives in THEIR block. If I was the buyer I would pull out as at some time I would maybe like to sell and would not want the freeholders dictating who I can and cannot sell to (assuming they pass credit checks etc).

MiM

Totally agree Satch. I just need to know if their behaviour could make them responsible in law for my sister's loss. Instinct says it should.

MiM

Also, if you're on Richard, what type of lawyer would deal with this? And what would be the chances of making a no win, no fee arrangment? Many thanks.