Council offered me the freehold in writting then changed there mind

JustTakeAllMyMoney

Hi,

I own a flat on shared ownership with the council, I approached the council about buying the additional % and increasing the lease in Feb 2011 and they sent out a valuation officer and then in the post I received a offer to purchase the 'freehold reversion' for x amount as long as transaction was completed by in 12 weeks. I accepted this offer and went back to them twice to confirm I was getting the freehold included in the price and not just the extra 30%, on both occasions they came back and confirmed I would get the freehold it was on this basis I decided to proceed on the price they gave. I then sorted out the mortgage this was based on the fact I was getting the freehold the valuation was based on that, by this time I've spent near on £1500 on mortgage fees and my own legal's plus lots of my own time.

The deadline passed for completion, I chased the solicitors daily myself for weeks (as you do) and put the delays down to usual slow solicitors, however the council verbally gave a further 6 weeks extension when the deadline passed. Yesterday the council solicitor contacts mine and says 'opps there was a mis-communication between concil departments' and in fact the offer was not for the freehold but only to purchase the additional 30% ! Everything I had done my mortgage offer etc was based on getting the freehold, I have the council confirming twice it was for the freehold, now they are saying its not its just the extra % of the property I don't currently own. They have had months to find this mistake and I'm now not in a position to proceed as the mortgage was based on getting the freehold, the council have not even apologised that due to there (mis-communication = incompetence) they have now cost me £1500 plus a lot of time.

I'm in the process of getting further legal advice but wondered if anyone here has any view on the situation, we hadn't exchange contracts though they had sent the offer letter and I replied acceptating it, I assume that forms a contract and even though the 12 weeks had expired there verbal extension for a further 6 weeks still applies ? If not can I claim against them in the small claims court for the £1500 I stand to lose not to mention the massive impact this is going to have on plans I had ?

I'm furious to say the least :mad: :mad:, £1500 to me is a lot of money and for them just to turn around say 'opps we made a mistake' and want to leave it at that is not on ! Also I'm starting to think may be there solicitor possibly knew there was a mistake and rather than owning up delayed things waiting for the 12 weeks to pass, made the offer of x weeks extension verbally and after the deadline pass for the 12 weeks then tell me the offer was wrong, obviously I don't have hard facts to prove that and Im not saying thats what actually happened but it could be the case.

Thanks

casper_g

If this is a flat, be very grateful you haven't managed to buy the freehold to it. Where several flats are located in the same building, a lease is very useful and important to govern the maintenance etc. of the building structure and communal areas. If you'd bought the freehold then anyone trying to buy your flat would have found it very difficult, probably impossible, to get a mortgage. You'd have devalued your property very significantly, I would think.

The one thing that confuses me is that you say you arranged the mortgage on the basis that you would be buying the freehold. This is odd -- as I said above lenders would normally run a mile from a freehold flat.

G_M

I accepted this offer

Did you Exchange Contracts? If so, the council must abide by the contract. If not, they can change their mind.

I also agree with casper above.

I suspect there was a misunderstanding within the council, and when they realised it was a flat, not a house, they altered their offer to make it a more legally-sound offer.

JustTakeAllMyMoney

casper_g wrote: »

If this is a flat, be very grateful you haven't managed to buy the freehold to it. Where several flats are located in the same building, a lease is very useful and important to govern the maintenance etc. of the building structure and communal areas. If you'd bought the freehold then anyone trying to buy your flat would have found it very difficult, probably impossible, to get a mortgage. You'd have devalued your property very significantly, I would think.

The one thing that confuses me is that you say you arranged the mortgage on the basis that you would be buying the freehold. This is odd -- as I said above lenders would normally run a mile from a freehold flat.

Agreed that the not getting the freehold is probably a blessing didnt know that at the time though I thought it was the thing to do.

What I meant on the mortgage was it was down as freehold on the property details but they have now said it can be changed to lease hold which is a help.

Considering though the council made this mistake Im not even confident in what the valuation was based on, was it the leasehold plus 30% or just the 30%. If its just the 30% I wouldnt of proceeded as the price they gave is way above what I feel the 30% is worth in the open market.

No didnt exchange contracts it was just the offer letter and reply to that.

G_M

JustTakeAllMyMoney wrote: »

...
No didnt exchange contracts it was just the offer letter and reply to that.

Then there is no contract.

You are back to square one.

cardinalbiggles

casper_g wrote: »

If this is a flat, be very grateful you haven't managed to buy the freehold to it. Where several flats are located in the same building, a lease is very useful and important to govern the maintenance etc. of the building structure and communal areas. If you'd bought the freehold then anyone trying to buy your flat would have found it very difficult, probably impossible, to get a mortgage. You'd have devalued your property very significantly, I would think.

The one thing that confuses me is that you say you arranged the mortgage on the basis that you would be buying the freehold. This is odd -- as I said above lenders would normally run a mile from a freehold flat.

Apart from in Scotland.