Unexpected leasehold problem - advice requested

stator

TrickyDicky101 wrote: »

I fail to understand why your solicitor would recommend the transfer of the freehold to the MC - it should only go to a company owned by those leaseholders paying the OR. Do the flats all have very long 900+ year leases?

What's your Ground Rent each year (and are there any provisions for GR increases)? Note i mean GR and not Service Charge.

I agree, if you're paying all the costs involved you should look to transfer the freehold to the people paying the costs!
If you give it to the management company for free you will have no control over their costs.
You could possibly look at buying the freehold back for just the residents who care about it. Then the management company would work for you. You'd all still have to pay the management company, but your interests would be safeguarded and you could fire the management company if you wanted.

ChrisH48

The reason I'm looking into this is that I want to sell my flat. I don't have the time or the inclination to set up a company or to attempt to retain the lease myself (or a share of it). What I'm aiming to do is make it possible to sell my flat as quickly and efficiently as possible. And then to sell it. So what I'm after is some confirmation that the solicitors letter above describes the best way to do that? or if anyone is aware of a different/better/cheaper way?


Cheers

shopbot

TrickyDicky101 wrote: »

What's your Ground Rent each year (and are there any provisions for GR increases)? Note i mean GR and not Service Charge.

I'd be interested to know who is receiving the Ground Rent (and issuing the annual Ground Rent due notice).

shopbot

ChrisH48 wrote: »

The reason I'm looking into this is that I want to sell my flat. I don't have the time or the inclination to set up a company or to attempt to retain the lease myself (or a share of it). What I'm aiming to do is make it possible to sell my flat as quickly and efficiently as possible. And then to sell it. So what I'm after is some confirmation that the solicitors letter above describes the best way to do that? or if anyone is aware of a different/better/cheaper way?
Cheers

You say that the Freeholders Company was dissolved in 2010. Have any of the flats changed hands since then? If the Solicitor is correct then there should not have been any sales in the last 4 years.

SB

ChrisH48

Ill find out about the ground rent and post back.


There was a sale in NOV 2010 and one in SEP 2014. There was also a sale that fell through due to this problem.


Seems to depend on the buyers solicitor.

shopbot

ChrisH48 wrote: »

Ill find out about the ground rent and post back.


There was a sale in NOV 2010 and one in SEP 2014. There was also a sale that fell through due to this problem.


Seems to depend on the buyers solicitor.

I think it is quite important to find out about both of these points.

The Solicitor you quote above says 'there is no landlord'. If there is no freeholder I can't see how any solicitor wouldn't pick this up, likewise a mortgage company. There are documents that must be signed by them in the sale of a leasehold. One of these is called 'Notice and Transfer of Mortgage.

Please note that I am not legally qualified but have bought a leasehold property so have layman's experience of the process.

SB

ChrisH48

Regarding the ground rent - response below:

I’ve checked your Lease and £10 per annum is payable to the Lessor i.e. AB Ltd, which you probably already know. If you haven’t each been receiving Ground Rent Notices/Demands then this can only be because the Lessor hasn’t bothered to collect it. Nobody else would be liable to pay it other than the seven of you directly to the Lessor (or via an agent if they had one)

Obviously the lack of Ground Rent demands in recent years will tie in with the receivership of AB Ltd. I suspect that due to the relatively small sums involved they didn’t demand this prior to 2010 either – I assume from your queries you have never received any demands for Ground Rent since the block was developed.

ChrisH48

And that is correct - I dont recall haveing ever received a demand for ground rent or having ever paid any.

Re the sales - not sure there is any more I can find out - it seems a good buyers solicitor spots the problem and the sales fall through - a bad one doesnt and they go ahead - the sales definately happened - Ive got the info from right move sold house prices - and the new owners live upstairs. Ive also spoken to the owner of the sale that fell through - and it fell through because of this issue - hence she has started off the enquiries via her solicitor.

ChrisH48

I've sent an initial query to the management company to ask why they never picked up on/made the owners aware of the lease issue - which seems to have happened just before or around the time they bagan to manage the property - does anyone have a view as to if the management company have any liability for this situation?

Jenniefour

ChrisH48 wrote: »

I've sent an initial query to the management company to ask why they never picked up on/made the owners aware of the lease issue - which seems to have happened just before or around the time they bagan to manage the property - does anyone have a view as to if the management company have any liability for this situation?

The responsibility for making the owners aware of any irregularities in the lease is the owners solicitor on purchase, in my view.

I doubt whether the management company is liable unless they agreed, when they took over, to sort this out and have done nothing about it. Management companies would expect to be paid for this, over and above the charges for maintaining the building and so on.