absent freeholder

freda11

I have a house which is leasehold and I pay ground rent of £3.00 per year. The freeholder is no longer around and has not collected this for 5 years. I am now going to have to take out indemnity insurance so my remortgage can go through, but what happens as the solicitor will not be able to serve notice to the freeholder about the impending remortgage?

G_M

It's legalise gone mad!

So you owe £15 in ground rent which has not been demanded and you can't pay, and the insurance policy to cover the possibility of a demand being made will cost you........?
!!!

The freeholder will have an address registered with the Land Registry on his freehold Title. Now, that may well not be his current address - indeed it may well be the address of your property! But that's surely where your solicitor should write. If no response is received within a reasonable timeframe, then I'd assume the remortage can go ahead.

But what does your solicitor say?

freda11

Thanks. I have 2 solicitors, 1 dealing with remortgage (free legals with mortgage lender) and 1 dealing with transfer of equity (going in joint names) my solicitor dealing with the transfer who I know well has said From the details on the official copies, it is unlikely that you will be able to trace the freeholder and , as is common, it is likely that it has simply become uneconomic for then to collect the rent. We normally solve the technical title issue by obtaining an absent landlord indemnity policy…but this is something that your mortgage solicitors will deal.

I have now rung the mortgage solicitor and spoke with secretary as the solicitor is now on holiday so she will have to get someone to call me, but from what she can remember the last time this happened the solicitor kept some monies back from the client incase the freeholder appeared, but she said she was not sure what happens about not being able to serve the freeholder regarding remortgage.

freda11

Mmmm the plot thickens, apparently a company called Eberlon bought the freehold to my house and next door (semi's) in 2008. I have had no correspondance to say this. The solicitor is going to write to them and if no reply will just retain £50 from my completion monies in case they appear at a later date. At least they will have an address now as to where the papers can be served to inform them of the re-mortgage, though I can't understand why they have to be informed that I am re-mortgaging?? She says they inform them of the remortgage upon completion.
I hope they can't hike up the ground rent when they feel like it? As it's for just a small amount what benefit do they get from it?

freda11

Well now i am worried, after hearing some horror stories that companies buy freeholds just so they can cause trouble at a later date, and in my case now! As I now no who the freeholder is, is it worth me sending them a cheque to cover ground rent since 2006 plus a bit more for interest etc and ask for receipt by return or am I best waiting for my solicitor to write to them? I have googled them but can find nothing only their address, no phone or email or website, all I can see is places to search for their company accounts etc! I am worried that when I first got my buy to let on the property nothing was mentioned from the solicitor that I should of got the freeholders permission, maybe it does not say i have to on the lease but u have never seen a copy of it). Now I am worried in case the freeholder demands high interest charges for late payment and a large charge for letting the property out, or even worse a refusal that the property cannot be let!

freda11

I have now spoken with the Freeholder company! Sounds stern! he can't give me the outstanding amount over the phone, surprise, surprise he will fax/email me, no doubt there will be £ added for x and £x added for x etc, the final amount outstanding will be interesting, considering its only £3 per year. They wanted £70 off my solicitor just for the privilage of telling her how much was outstanding!!

freda11

received email they want £70 before they can furnish me with the information requested!!! These bandits should be outlawed, if they had informed me they were my freeholder when they bought it i would of been able to pay the ground rent!