Freeholder refusing permission

Burridge60

Jebrelli wrote: »

A 70-year lease is bearable, but it's more the implications this has when I want to sell the place. The property dates from about 1900 and was converted into two flats in the 1980s.

So the people that converted the property into two flats made their profit and held onto the freehold to make more money in the future?

Money for old rope is what I would call it but it's the state of the leasehold market.

You may have already spent quite a sum getting this far but buying it and then expecting the Freeholder to be desperate for money and accept a lower amount to extend the lease would be to pretend the Pope isn't catholic.

You don't want to pick up the tab for someone else failing to adhere to their lease conditions and obtain permission for alterations as they are clearly taking the chance to apply punitive changes to the overall lease to grant permission.

While you are at it check the lease doesn't require you to ask permission of the freeholder to do other things such as rent it, change the windows or front door etc. I bet you would be surprised what they need to give permission for.

Ask your Solicitor for advice thats what they are there for. If it was them making the purchase would they accept this situation.

dave49

The vendor should serve a notice to extend the lease. It then gets assigned to you.

The Statutory extension is 90 years IN ADDITTION to the remaining term. Ground Rent is also extingwished (a peppercorn) Use the Act - your vendor should indemnify you for the charges / costs.


Thats the usual route

Jebrelli

Doozergirl wrote: »

Have you googled their name? See what comes up. Some are quite notorious!

I have now! Lots of LVT reports about them taking over freeholds without informing the leaseholders, leaseholders continuing to pay ground rent to previous company - then suddenly getting a big bill for "administrative charges" due to new company chasing them with letters for non-payment...

... and the company keeps winning.

sooz

Run...numerous mentions at the LVT, as well as the lease negotiations and the way they are handling the retrospective permissions should all be ringing HUGE alarm bells.

Doozergirl

Jebrelli wrote: »

I have now! Lots of LVT reports about them taking over freeholds without informing the leaseholders, leaseholders continuing to pay ground rent to previous company - then suddenly getting a big bill for "administrative charges" due to new company chasing them with letters for non-payment...

... and the company keeps winning.

You know what to do...

Please don't buy it. I'll buy pretty much anything, but a lease that needs extending with a litigious managing style and a freeholder who clearly has no regard is possibly one of the worst things I could imagine having to live with.

Jebrelli

I spent last night thinking it through and my initial thoughts are:

- the company is probably money-grabbing enough to accept a small premium (and high ground rent) for extending the lease to 99 years

- once the lease is extended, after 2 years I could exercise my right for a statutory extension; giving me a much longer lease and peppercorn ground rent (hopefully only paying a small cost for the extension)

- no property is perfect, particularly not leaseholds (and that's pretty much all there is down here), and I've already given up one sale because of the management company's records

- why would any other properties out there be better than this?

Maybe I'm just letting my attachment to the flat cloud my judgement, but I can't see any reason not to make an offer to extend the lease.

ILW

Why not look for a freehold. Much less grief in the long term.

BitterAndTwisted

You are just about to put a toe into shark-infested waters! I wouldn't contemplate buying this property if it were me. It's a buyer's market at the moment and there will be other properties, possibly even nicer than this one for less money with better, more reputable freeholders. Please do not proceed

sooz

It's your choice.
Lovely flat, but years of problems with the freeholders.
Or wait and find a different flat, either with a better freeholder, or better still share of freehold.

I've taken a freeholder to the lvt, and wouldn't recommend it.

If you do choose to go ahead, open a huge file now for all the paperwork you will have, and have to keep.

Send everything recorded delivery. Keep copies of all letters you send, together with the r. delivery slip attached. Check and double check every estimated service charge, bill and notice they send you.

And prepare to be ripped off and feel bitter until you finally sell the place.

I've been there, and would not touch a leasehold flat with a known problem freeholder again with a barge pole (infact I didn't, the problem freeholder bought it long after I got my flat )

If you really want to buy this flat, good luck. You will need it.

ILW

Just bear in mind that with leasehold, you own NOTHING. All you have paid for is a right to occupy for a period. In effect not much more than paying 100 years rent up front.