face losing home because I own leasehold

starving_artist

I am in despair. I live in a house converted in to two flats. I have owned my leasehold flat for the last 18 years but now I may be forced to sell it. Shortly after I bought it the other leasehold flat was sold and the new buyers also bought the freehold from the landlord. I should have been served a notice and offered First Refusal but wasn't. The new freeholders/leaseholders never lived in the flat but rented it out and when they eventually sold the freehold again went to the new leaseholders without me being offered first refusal. This was illegal but as it turns out the legislation does not help me because you can only take up the Right of First Refusal if you form a majority and since there are only two flats I will never be in a majority. In addition the current freeholder/leaseholder is now resident and can sell the freehold without ever offering it to me in the future. (I can't understand how since it was sold illegally in the past it is not considered to be a defective title now. After all if you buy something which was illegally obtained your rights to them are usually invalidated). Basically I have no chance of ever buying the freehold or a share of it. Now this is crucial because I have discovered that I am in an extremely vulnerable position. My lease is down to 74 years and I need to extend it. The freeholders have made it clear to me that they intend to make me go through the full legal process meaning I will have to pay full market value as well as both their legal fees and mine. From my research this is going to cost about £15k. On top of that they have served me with a notice that they intend to carry out major works on the roof involving replacing most of it even though it is not actually leaking. My share of the cost is likely to be £8-10k. I have consulted with the lease advisory service and while I have limited rights to challenge the works at the end of the day they are entitled to carry them out.
I live on an extremely low income (less than 10k) but if I do not pay the service charge for the roof repairs they could forfeit my lease and I could lose my home.
I have tried to suggest a more informal approach to come to some agreement but they insist on formal written communication and have shown no willingness to compromise. I am afraid that I now feel so upset and emotional about the whole thing it would be even more damaging for me to try and talk to them in person.
My fear is that even if I somehow raise money for the current repairs they could carry on piling on service charges until I can't pay and so repossess my flat.
I feel aggrieved that I have been deprived of ever having an interest in the freehold and thus any control over my liabilities.
I have to say I feel quite suicidal about this. My flat is the only thing I have I couldn't bear to lose it. I am desperate for advice or suggestions. If nothing else if you've managed to read this to the end I hope it will be a warning to those thinking of buying leasehold. I had no idea what the dangers were.

epz_2

have you upset them in some way, sounds like some personal trouble going on for their attitude.

if not, have you thought about it? if they are your neighbour you can make their life a missery just for the hell of it.

hostie

Hello, I am sorry to hear about your situation.
I do not think that trying to make their life a misery would help. It would make you more stressed and angry and would possibly backfire in the long run.
First of all I think you should contact your local council for information on home repair initiatives.
There may be grants available which would help cover the cost of the roof etc.
If the roof is leeking then they have to fix it and then get your share from you. Make sure that you find out from your council (and title deeds) exactly what you are liable for. They may just be trying to scare you away by threatening legal action etc.
If you are on a low income I wonder if you would be entitled to legal aid? This is something you should look into.
Once they bill you for the roof repairs you could write to them explaining that you will have to pay your part in installments.
If I were you, I would be trying to save money (take on an extra job if necessary) to be able to take them to court for this freehold thing. Try to be positive and motivated. I am sure you can sort it.
Good luck
If all else fails, this sounds like the type of story that you might be able to get some money from magazines or papers for. I would not do that until absolutely last resort though as it might prejudice your chances in court.

Doozergirl

You are entitled to question the reasonableness of the costs of the work and you are also able to submit your quotes for the work that needs doing. I can't imagine that they would want to replace the roof without it needing doing - just because it doesn't leak, it doesn't mean it isn't approaching the end of it's life. However, I cannot imagine a house with 2 flats needing anywhere near £16k-20k total needing spending on it's roof! Everybody wants to save money, they must be open to cheaper quotes. If you can't afford to pay half of a more sensible cost, then I guess you option is to sell and reduce your asking/selling price accordingly.

I know you don't want to sell up but your lease is shortening - you should be able to sell relatively quickly without having to renew your lease at all - it is a desirable, but I doubt that you would recoup £15,000 on the sale price. By that cost I will presume your are in London, in which case I should say your chances of selling with 74 years is very good. You simply tell people, if they ask, that the price reflects the shortening lease (who is to say if it does or it doesn't)

And please, it really isn't worth feeling suicidal over. I know you must be so attached to your place but selling it relieves all that pressure, with far better consequences I'm far from a councillor, but sometimes you have to cut out the rotten parts.

Owning a house comes with the associated maintenance; if you were to rent somewhere you wouldn't have to face those issues - if you have a bit of equity you could invest it and, if you were lucky, the interest would pay much of the rent for you. Alternatively, I suppose you try and find somewhere, in good nick, with a decent lease, to buy.

A house is only bricks and mortar. Anywhere can be home. Things might actually be better somewhere else A change of location can change your life.

[Deleted User]

You might be best to sell up and move somewhere cheaper, 10K/year jobs are ten a penny in any part of the country.

I doubt you will get legal aid as this is a civil matter so no one cares about you getting f*ked over im afraid. So youll have to research the law and see what you can do.

pboae

If you haven't contacted them already you need to speak to Lease urgently http://www.lease-advice.org/ they will be able to tell you where you stand with regards the major works and the lease renewal. Good luck.

Richard_Webster

As usual, there is a lot of sense in Doozergirl's post above.

You also need to remember that even if you were a joint freeholder with the other flat owner they might still be wanting the work done. OK you would be in a better negotiating position, and could possibly prevent work that was merely desirable - rather than essential - but if it was needed, then in the end they could still take you to court to get the work done.

If you want to sell, you will need to be careful, because if the work has not been done, then the buyer will be told about this when a questionnaire is sent to the freeholder. The questionnaire more or less has to be answered by the freeholder or his agents because if not most buyer's solicitors wouldn't advise their clients to proceed at all, for fear of what might be hidden.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients

cattie

£8k-£10k is a lot of money for a roof, even if you are in London. The average price for replacing the roof of a 3 bedroomed property is £3.5k so unless the building you live in is huge or needs selected tiles because of being in a conservation area or such, the price quoted sound ott.

The majority of freeholders are quite reasonable people & you've just been incredibly unlucky to have ended up with somebody who is at the other end of the reasonable & approachable scale. Perhaps they have viewed the idea of being a freeholder over your property as a way to make some easy money, unfortunatly you do get some who are unscrupulous in this way, but thankfully they are the minority, I hasten to add. Don't let these people put you off of owning leasehold property in the future, as if all you can afford is a flat, then leasehold it has to be.

If you are really unhappy there then try to get the roof & works issue over with first, being sure to challenge the costs if you feel they are ott, then consider selling your flat & moving to a new one.

Please contact your gp & also somebody at MIND if this is affecting your mental health. Mind have advocacy workers who can possibly give you moral & practical support.

Good luck.

KiKi

Hi there

When I read your post I had to respond because I was in the same situation a year ago as you. So firstly, I completely understand how this makes you feel - powerless, manipulated, and very very angry. Secondly, I'll offer some practical advice from my own experience.

Whilst I had a longer lease on my flat than you, the freeholder was a company, which in turn was managed by a Managing Agent who of course didn't care about the costs they were passing on because they had little vested interest, other than making a profit. They were trying to charge the leaseholders £15K for replacing some guttering. OUTRAGEOUS. But as you've realised, you have very very very little recourse. I was SO stressed by the whole situation, I just didn't know what to do. I couldn't bear to lose my home, either, and but I knew that staying there would mean ongoing services charges of £1200 a year, PLUS all other charges they put on top (in the last two years I paid an additional £7000 alone).

You have to pay your share of the service charges, so first task:
a) find out what your proportion is

Secondly, if the roof needs repairing then it has to be done. You are legally allowed to see the quotes (should be 3 or more) for the work.
b) check the quotes, see what's being charged

From my own experience, DON'T make enemies of them. It isn't worth it. What you have on your side is that you know who the freeholder is, and they live in your building; they're not an alien company of whom you will never get hold. The only recourse you have here is buddying up with them. Go upstairs, take some biscuits. Offer to have them round for tea. Be sickeningly nice, whatever you have to do to influence the quotes and the outcome. Offer to help - because, hey, you've heard of some good companies and you'd like to recommend them. Get those companies round (when they're out if need be) and get your own quotes. Offer them up to the freeholder and show them how much *they'll* save (you're not worried about yourself here). So
c) take control as far as you can with regards to the roof - do whatever it takes and do your research

Once that roof is agreed - see how the relationship is. Can you now negotiate the renewal of the lease more cheaply, perhaps? If not, from my own experience only, though, I would get out. Sell the flat and move. Rent for a while if you have to. You will almost undoubtedly have to pay for the roof regardless. But you could up the price of the flat, and offer to reduce it to reflect the roofing cost.

Could you extend your mortgage to pay for the roof if it comes to it? Also the freeholder should offer repayment options for that amount of money; they can't expect you to have it in savings.

I'm so so sorry this is happening to you; it's awful, I know - I've been there.

I always thought about it in this way: if the worst comes to the worst, I sell my flat, with little profit, and I have to move somewhere smaller / different / rent until I can get back on the ladder again. But NOTHING there is worth being suicidal over. Just try not to let your emotions get the better of you when you're talking to your freeholder.

Best of luck - let us know how you get on.

KiKi

CYBERCIDERSAVER

Sounds like they want you out. Maybe put your flat on the market and see if they are inrterested in buying it. If so they might even be NICE to you for a bit.

It would be worth finding out their true intentions....

starving_artist

Thank you all so very much for your replies and for appreciating how deeply distressed I am about this.

I found out today I am not eligible for legal aid or home improvement grants because I am self employed and my property counts as an asset.

I have written to the freeholders pointing out my concerns about the scope of work the intend to carry out and asked for three roofing companies to be allowed access to examine the roof and make a report. However at the end of the day they may well just insist on the quotes being as per their original spec and a large recognised roofing firm to do it even though there may be equally competent but cheaper companies. I could take it to the Leasehold Valuations Tribunal but it will cost me money to do that and I am sure they will argue it is justifiable on the basis of a long term view.

As for the lease extension may be I'm clutching at straws but there are still things which bother me about the way the freehold was sold above my head which I would really like to get to the bottom of - like for instance the fact that at one stage when the freehold was sold I was the only qualifying tenant - but I need to ask someone with very specialised and expert knowledge. I have consulted Lease-advice.org but they are reluctant to stray too far from general scenarios. At least if I could dig up something which would weaken their claim on the freehold it would give me some bargaining power...