Parking rights under leasehold when purchasing share of freehold

clickz26

We live in a converted house that has been made into 2 flats. We reside in the larger flat, and pay twice the amount of land rent that the other flat owner pays.

The front forecourt in our flat has 3 parking spots.

A deed of variation to our leasehold grants us an "exclusive right to park two cars in the front forecourt". This , however, is not shown as our 'premises' in the drawing attached with the leasehold (i.e. not marked red)

Recently our freeholder has offered us and owners of second flat the right to purchase the freehold. The second flat owners are under the impression that if they purchase 50% of the share of freehold, they will also have access rights to 50% of the parking space (and not 33% as has been the arrangement so far)

Our understanding is that the purchase of share of freehold cannot nullify exclusive access rights already granted under our lease ? Or can it ?

Is our lease completely up for renegotiation if the freehold is sold or bought 50:50 by the two flat owners ?

eddddy

Based on what you say, you are correct - your neighbour is wrong.

In simple terms, buying the freehold means that you jointly take over the rights of the freeholder. Your rights as leaseholders don't change.

If your neighbour is going to be 'difficult' about things like this, you should think carefully about whether you want to jointly own a freehold with them.

For example, if the roof is leaking into just your flat, you will need to get their agreement to get it fixed - and depending on the terms of the lease, they will probably have to pay for part of the repair (even though it benefits you and not them).

clickz26

Thanks eddddy for the quick response !

The freeholder is willing to sell the freehold entirely to one of the owners.

If we decide to not purchase a share of freehold, can the owners of other flat purchase the entire freehold without our consent ?

We worry that our position will become worse if our 'difficult neighbours' end up owning the entire freehold.

eddddy

clickz26 wrote: »

If we decide to not purchase a share of freehold, can the owners of other flat purchase the entire freehold without our consent ?

Yes.

Very roughly, the process works like this:

- The freeholder decides he wants to sell the freehold for, say £10k.
- The freeholder must give the leaseholders first refusal
- Over 50% of the tenants must vote to accept the offer (so in your case, that's both of you).
- If you don't accept the offer, the Freeholder is free to sell to anyone he likes for £10k - without your consent.

(But, if he drops the price to £9k, the freeholder must come back to you to give you first refusal again before selling.)


So you could vote against the offer - and then secretly offer the freeholder £10k, if you want to buy the freehold by yourself...

... but your neighbour might have the same plan, and a bidding war might follow.


For more info.... http://www.lease-advice.org/publications/documents/document.asp?item=16

G_M

clickz26 wrote: »

.......
The front forecourt in our flat has 3 parking spots.

A deed of variation to our leasehold grants us an "exclusive right to park two cars in the front forecourt". This , however, is not shown as our 'premises' in the drawing attached with the leasehold (i.e. not marked red)

What does the other flat owner's lease say?
* if it says "right to park one car", then it all seems clear-cut
* if it also says "right to park two cars", then there's a problem - I guess it's 'first come first served' so far as using the 3 spaces is concerned. You both have the right to park 2 cars, provided there is space available.

.....The second flat owners are under the impression that if they purchase 50% of the share of freehold, they will also have access rights to 50% of the parking space (and not 33% as has been the arrangement so far)
They are wrong. Change of ownershp of the freehold, whoever buys it, will have no effect whatsover on the two leases.

Our understanding is that the purchase of share of freehold cannot nullify exclusive access rights already granted under our lease ?
Correct

Is our lease completely up for renegotiation if the freehold is sold or bought 50:50 by the two flat owners ?

Any lease is always up for re-negotiation, at any time. But both the leaseholder and freeholder must agree any change.

chris_m

eddddy wrote: »

So you could vote against the offer - and then secretly offer the freeholder £10k, if you want to buy the freehold by yourself...

... but your neighbour might have the same plan, and a bidding war might follow.

Or you could end up as freeholder with an extremely hacked-off leaseholder who also happens to be a neighbour.

DandelionPatrol

clickz26 wrote: »

Thanks eddddy for the quick response !

The freeholder is willing to sell the freehold entirely to one of the owners.

If we decide to not purchase a share of freehold, can the owners of other flat purchase the entire freehold without our consent ?

We worry that our position will become worse if our 'difficult neighbours' end up owning the entire freehold.

The question of the offer to sell the freehold and the question of your parking rights are completely separate and you are best to think of them that way.

As explained already, your parking rights are secure under the variation to the lease and whoever buys there is no change.

So really, the only question is that of buying the freehold or letting the neighbours do so. I agree with your concern that the neighbours may become difficult if they take over some or all of the freehold. If you let that happen, you will need to educate them.