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Freehold issue
breaksbassbleeps
Posts: 6 Forumite
Hi everyone.
My mum is trying to purchase the freehold to her property but is coming up against quite a problem.
The company who owns the freehold went bump back in 2007 and now the land is in escheat (owned by the crown estate). Now the crown estate wont let her purchase it because there is a charge on the freehold. The original owners used the freehold to secure a loan which was taken out with Barclays bank.
The only way my mum can buy the freehold is to pay back someone elses loan to remove the charge on the freehold which seems insane.
I've tried to contact Barclays, but only to get met with the usual call center confusion.
My mum is now living in an unsalable house because nobody wants to buy a house with a short lease remaining with no option to extend or buy it.
Has anyone else come across this and had any success?
Thank you.
My mum is trying to purchase the freehold to her property but is coming up against quite a problem.
The company who owns the freehold went bump back in 2007 and now the land is in escheat (owned by the crown estate). Now the crown estate wont let her purchase it because there is a charge on the freehold. The original owners used the freehold to secure a loan which was taken out with Barclays bank.
The only way my mum can buy the freehold is to pay back someone elses loan to remove the charge on the freehold which seems insane.
I've tried to contact Barclays, but only to get met with the usual call center confusion.
My mum is now living in an unsalable house because nobody wants to buy a house with a short lease remaining with no option to extend or buy it.
Has anyone else come across this and had any success?
Thank you.
0
Comments
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How long is the short lease?
I think really your best bet here is to have a solicitor find out everything they can.0 -
0
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Barclay's call centre is unlikely to be able to handle something like this.
Now if the problem is a short lease, I would think she would be able to extend as a matter of right, so is it essential to buy the freehold? In respect of the freehold, I am not sure why the crown have it and not Barclays, because Barclays have the right to foreclose
Do you know how much is secured on the freehold? And how does that compare to the value of the freehold?You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
Are you sure that the terms are not to sell it to you and from those proceeds the loan is paid off- though in practice they could ask for both the land and the loan to be paid off.
I am fairly sure that when the title is handed over to the CE, the loan cannot be insisted on by the chargeholder, but would not be surprised if the CE want both cleared.
If I assume that your house is a house and not flat, then you might instead seek a lease extension which they will honour.
http://www.lease-advice.org/publications/documents/document.asp?item=15
LEASE will be able to help you, and I would surprised if given that option that you cannot negotiate a deal with the CE's solicitors.
I would say that this is not a DIY thing you must get advice. Even I would ask Counsel's advice before dealing with it
Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0
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