Lease length mystery

buzzyzoe

Thanks very much! It's all starting to sound slightly dodgy to me. I will see what I can find out from the estate agent and try and get an update.

As of yet, I haven't put an offer in. If I mention this and can't get a satisfactory explanation, I think I'd be wary of putting an offer in anyway.

buzzyzoe

Oh also I forgot to add, at the bottom of the title register for COMPANY, there's this extra bit which I only spotted last night:

Schedule of notices of leases
1 12.12.2006 ADDRESS, second 04.12.1987 floor flat 99 years from
24.6.1986
End of register

So it definitely references there being what I can assume is an underlease, which makes me think it's not a Land Reg mistake, and there is definitely a main lease and then this shorter lease, but I'm still not entirely sure why, or who you would need to pay in order to extend the lease.

If COMPANY has bought the lease from XXX Realty, and then underleases to the three flats, I would imagine it would be for the purpose of making as much money as possible when people are extending their leases? Does that make any sense?

buzzyzoe

And this is the information on COMPANY from companycheck.co.uk

COMPANY is an Active business incorporated in England & Wales on 31st March 1998. Their business activity is recorded as Renting And Operating Of Housing Association Real Estate. COMPANY is run by 3 current members. and 1 company secretary. 1 shareholders own the total shares within the company. It is also part of a group.

The latest Annual Accounts submitted to Companies House for the year up to 30/11/2012 reported 'cash at bank' of £29,014, 'liabilities' worth £42,820, 'net worth' of £338,200 and 'assets' worth £30,014. COMPANY's risk score was amended on 30/07/2013.

The current and previous directors and secretaries are as follows:

Current Officer Name Appointed
David SURNAME 30-01-2006
Steven SURNAME 30-01-2006
Leanne SURNAME 28-05-2010

Current Secretary Name Appointed
Jeffrey SURNAME 02-09-2003

Previous directors and secretaries
Previous Director Name Appointed Resigned
INDIVIDUAL 30-06-2006 28-05-2010
Alan SURNAME 02-09-2003 02-02-2006
INDIVIDUAL10-06-1998 02-09-2003
INDIVIDUAL 10-06-1998 15-02-2002
XXX Directors LTD 31-03-1998 10-06-1998

Previous Secretary Name Appointed Resigned
Corporate Management Service 15-02-2002 02-09-2003
INDIVIDUAL 10-06-1998 15-02-2002
XXX Secretaries LTD 31-03-1998 10-06-1998

Again, no idea what any of this means really.

princeofpounds

Click edit and remove the names of the people and the company, put in replacement monikers.

buzzyzoe

This is the reply from the estate agent:

The Freeholders sometimes have no interest or if the development is too small for their usual volumes, they sell on the freehold or the rights for a certain number of years. Therefore, the company who has bought the thousand year freehold rights on the property will be acting just as a normal freeholder.

Legally this should not have any impact on the leaseholders but the solicitors will enlighten us fully when they recieve the management pack along with the local searches.

loubel

From what you've posted, you are purchasing a flat with an underlease with 72 years remaining. Your landlord has a 999 year lease and their landlord is the freeholder.

I can't see anything to suggest the seller is involved in the landlord company. Have they said they are?

buzzyzoe

They haven't said that. As far as they're aware, they have a normal 72 year lease and that is all.

When I asked the estate agent about the various title plans initially, he didn't know anything about it. He then looked over the plans and gave the above reply. It doesn't sound like the seller was aware that there was an underlease.

From his replies, it all sounds above board, unless anyone can see something I'm missing?