Leasehold Garage Technicalities

Zomoniac

Hi all, I know the freehold house with leasehold garage has come up a few times but can't find anything relating to this specific predicament.

The house I'm about to exchange on (subject to this clearing up ok) has a leasehold garage attached to it with a coach house above it (and two other garages). This would be subject to the usual possibilities of ground rent, insurance and the like but the company that built it (McInenry Homes) has since gone under, with KPMG having taken over everything. The previous owners have never paid anything towards anything relating to the garage. I've spoken to the woman living in the coach house, she's a housing association tenant so hasn't been able to tell me what her situation is. I've also spoken to one of the neighbours who owns one of the other garages, she said she remembered something about the garage coming up when she bought the house but doesn't recall the details, but isn't paying anything to anyone either.

Because KPMG aren't being clear with anything, and nobody seems to know who is actually responsible for the leasehold, we have no idea if we'll ever get charged for anything or how much. My solicitor is concerned that if KPMG sell the leasehold with associated debts then in the future somebody could land us with a backdated bill for ground rent and insurance going back to 2009, since nothing has ever been paid.

My solicitor has seemingly contacted everyone but nobody seems to actually know what the situation is. She has suggested a possible best way forward would be to take out a contingent buildings insurance indemnity, which would sit with the deeds on completion, and get the seller to pay for it, which would in theory cover any charges that may arise in the future.

Anyone got any thoughts? I just want my house!

ognum

Has the solicitor spoken to the HA who own the flat or have you?

My worry would be that the flat will require maintenance like a new roof for example and you will be expected to pay a proportion of the cost. Also who holds the building insurance? If you car caught fire and burned down the building how would it be rebuilt.

I think you need to look further into this? have a meeting with the HA.

giddypenguin

What does it say in the lease regarding ground rent? We have the same set-up (although the flat is privately owned) it states that there is a maximum ground rent of £1 per annum, and the only other costs we are liable to pay are any extra costs to their house insurance - caused by the leasehold agreement of the garages below. We've never been charged anything - these things are becoming more common on new developments now.

stator

What exactly does the lease say about rent?

Zomoniac

I believe it says it's a peppercorn rent, so £1 I would think (I don't have it to hand). I've not spoken to the HA, but the solicitor thinks that if we did it could make any insurance taken to cover potential backcharges invalid.

giddypenguin

If it's a peppercorn rent I don't think you've got much to worry about. I asked to my neighbours who own the flat if they wanted anything to cover any 'extra' house insurance costs they had to pay and they shrugged and said it didn't affect it enough to make it worth the hassle of asking us (and the other house owner) for it.

stator

If the lease only allows for a peppercorn then you really don't have to worry. The landlord can only charge what the lease allows. So at worst you might have to pay one peppercorn per year backdated about 6 years? Perhaps you could hedge yourself on the futures market and buy some peppercorns in advance, just in case there is a crop failure and the price sky rockets.