Buy Your Freehold - guide discussion

Janzzz

Joanthebone wrote: »

Hi Janzz, If you want to sell anyway, why not go for the 999 years and share of freehold? The buyer will be paying and I would have thought that would be more attractive to a potential buyer too?
I think our own leasehold surveyor will be the best person to give you advice now.

Thank you very much Joan,
you are right, we will probably do that.... sound like a best option.
We are talking to someone, however, I'll keep this in mind and let you know if necessary. Please, feel free to PM me his/her details.
Thank you very, very much
Have a great day.

Tomato76

Hi,

Looking for some independent, non-biased advice.

I own an apartment in small block of flats.

On the same site that the apartment is located are several houses, communal gardens, underground parking for the houses, with visitor spaces providing parking access to visitors of flat and house owners, and a parking lot and bin store just for the flat owners.

Our landlord has just issued the flat owners two landlord and tenant act section 5 notices:

1 for the sale of freehold interest in the apartment block (for a high enough price to deter any interest from apartment block owners)

1 for the sale of freehold interest in the site, i.e. the flat and houses' communal land described above, excluding the block.

The second is at a very low price on 999 year lease.

Buying the freehold for the apartment block looks to out of the question, but the flat and house owners are in a good position to buy the site freehold.

On one hand i see that it would be advantageous for flat owners and house owners to to earn a share of the site freehold together. Though were it to go ahead, without apartment buying a share of the freehold of the block itself, owners of the block would ultimately have two landlords.

Based on the poor value for money we get from our services charge payments, in owning a share of the site freehold I could see some benefits in eventually having much better control in the management of the condition of the site.

However I am also trying to work out what might be the risks in owning/ selling a flat with two landlords, even if one half of the pair of landlords are co-owners of the properties on the site, as opposed to 100% a large organization that we have come accustomed to since the development was built.

With the limited information available, if anyone could point out some potential risks with the above scenario, it would be much appreciated.

Thanks,

Tom

eddddy

Tomato76 wrote: »

Our landlord has just issued the flat owners two landlord and tenant act section 5 notices:

1 for the sale of freehold interest in the apartment block (for a high enough price to deter any interest from apartment block owners)

1 for the sale of freehold interest in the site, i.e. the flat and houses' communal land described above, excluding the block.

The second is at a very low price on 999 year lease.

There's some confusion here. You say the current freeholder wants to sell the freehold of the land...

....What does the 999 year lease relate to?


The freehold of the apartment block is probably more expensive, because it attracts ground rent (i.e. It provides an income to the freeholder for doing nothing).

The communal land probably doesn't provide any rental income, so it's cheap.

Tomato76 wrote: »

...owners of the block would ultimately have two landlords.

It's impossible to have two freehold titles relating to the same building. You would have just one freeholder (landlord).

... unless there is a headlease - but since you don't mention that, I'll assume it's not the case.

However, you (or your freeholder) might have to pay for maintenance of the communal areas, to whoever eventually owns the communal areas.

Does your lease say that you have to pay for maintenance of the communal areas in question?

Poet100

Hello,
As far as I'm aware, the taking of control of building management (leasehold) is not possible if the building is under local authority control. My question is, does the same apply if it's a housing association?
I suspect it's the same.

Nick6159

Does anyone no what this means

That no messuage or dwelling house or other building or erection shall be erected on the land hereby transferred whether in addition to or in substitution for the messuage or dwelling house and buildings presently erected thereon until the location and site of such messuage or dwelling house building or erection and detailed plans, elevations and specifications thereof shall have been submitted to and approved by the Transferor or its surveyor whose charges thereof shall be borne by the Transferee, save that the alteration for purely residential purposes will be permitted without a fee being charged.

Nick6159

Does anyone no what this means? Want to buy the freehold but states this in the small print.


That no messuage or dwelling house or other building or erection shall be erected on the land hereby transferred whether in addition to or in substitution for the messuage or dwelling house and buildings presently erected thereon until the location and site of such messuage or dwelling house building or erection and detailed plans, elevations and specifications thereof shall have been submitted to and approved by the Transferor or its surveyor whose charges thereof shall be borne by the Transferee, save that the alteration for purely residential purposes will be permitted without a fee being charged.

GTG

I would say that there is a restriction on building on the land other than for residential purposes. If for any other purposes you have to seek approval from the vendor/transferor and at their discretion pay for their surveyor to report to them on it in order for them to consider giving permission for the development.

I am not a solicitor and have had no training in legal matters so would strongly encourage you to consult your solicitor.

Martiangirl

Hi All,
I am considering buying the freehold on my flat which is one part of 4 flats in a semi detached Victorian building. I have 87 years left on my lease so lease extension looms anyways. The managing agents fee are steep and lease terms stipulate property upgrade /maintenance every 4 years or 5 if survey shows its in good order. We ve been hit by high repair/maintenance costs of approx £9k last year per flat in the last 3 years so there may be another high bill in our end of year accounts again. If survey due this months defers works to next year there is a window of opportunity to give enfranchisement notice soon.

There are shared areas we all enjoy access to: parking at the front shared by 5 other buildings owned by same freeholder and the shared back garden . At present there is a gardener appointed to cut grass and we can all use it as communal garden space with some covenants in place not to dry laundry there. Would we still access to it post freehold purchase?

In terms of parking we have parking enforcement firm giving all tenants a permit to display in cars which is a nuisance as these are car specific.
How does this get dealt with when we buy freehold? The parking ground does not form part of leased property as such.

Also if only 2 of of us buy freehold do we need to honor the other two tenants lease terms and have surveyor every 4 years with frequent repair/upgrade costs?..so far its been repainted every 4 years which seems excessive.

Many thanks in advance for any advice.

eddddy

Martiangirl wrote: »

...lease terms stipulate property upgrade /maintenance every 4 years or 5 if survey shows its in good order....

...Would we still access to it post freehold purchase?

In terms of parking we have parking enforcement firm giving all tenants a permit to display in cars which is a nuisance as these are car specific.
How does this get dealt with when we buy freehold? The parking ground does not form part of leased property as such.

Also if only 2 of of us buy freehold do we need to honor the other two tenants lease terms and have surveyor every 4 years with frequent repair/upgrade costs?..so far its been repainted every 4 years which seems excessive.

You would probably purchase the freehold of the entire property - including gardens and parking.

As freeholders, you could choose your gardeners and choose how parking is enforced (unless the lease says otherwise).

But you cannot change the terms of anyone's lease - unless they agree.

As freeholders, you would have to honour all terms in the lease - unless the leaseholders agree otherwise.


i.e If all 4 leaseholders agree not to survey / repaint every 4 years - that's fine.

But if a new leaseholder buys a flat and wants survey / repaint every 4 years (and that's what it says in the lease), you'd have to do it.

You could avoid that by varying all the leases now (if the leaseholders all agree), then any new leaseholders would be bound by the new terms - but there would be legal costs.

Martiangirl

Thank you. That clarified some of it for me. I 'll make my enquiries about other tenants and their situation and appetite for joining in freehold purchase. This will give me indication if they would want lease terms varied or not.

I guess I still need to find out if we 'll have access to use other parts of the garden and parking not immediately facing and behind our building as I don't know if freehold purchase would be based on apportionment of plots of land for each of the 6 houses.

Thanks again