Freehold house leasehold garage sample agreement wanted?

absolutelyjess

Hi all

We're in the process of selling a freehold house with a leasehold garage which is under a coach house and owned by the coach house owner. Our buyer's solicitor is asking for assurances regarding the garage. The freeholder of the garage is very helpful and has agreed to sign a letter that we give him outlining his responsibilities (within reason, of course) but that he will service the garage and insure it.

What i need to know is how to word this agreement - does anyone have any useful links/samples of lease agreements?
Ideally, some specific wording regarding repair and maintenance when needed, and wording regarding 'I will make changes to the insurance policy details to make changes within 2 weeks...'

There is an existent leasehold agreement which states that the owner of the coach house will maintain the garage, and will insure the garage - but our buyer's solicitor is looking for more specifics on how and when etc. There's a peppercorn rent paid £1pa, and no ground rent or service charge or anything else.

I'd really appreciate any advice on this quickly as our vendor will be pulling out at the end of the week unless we can get the details of this sorted with our buyer!
Thanks!

G_M

Don't do it.

There is a lease on the garage, and the lease provides a legal framework between the freeholder and leaseholder. That is exactly the purpose of a lease!

It does not need supplementing.

Indeed, any written statement you give would carry no legal force in any future discussion, negotiation, dispute, legal argument between the freeholder and new lease-owner.

Though it might provide the new lease-owner with a legal case against you in the future.......

Are you doing your own conveyancing? If so, now is the time to stop.

If not, I'm surprised your conveyancer has not provided you with more helpful advice.

The most I would consider doing to reassure the buyers is to;

* invite them round again
* provide tea and biscuits (OK folks - or cake!)
* invite the freeholder too since he seems amenable
* let them chat and then the freeholder can directly reassure the buyer :
a) you are then not involved
b) it's all verbal

absolutelyjess

No we're not doing our own conveyancing.

Our buyer's solicitor does not believe that the current leasehold agreement is sufficient to protect his client's interests - i mentioned the repair and maintenance details - he want clarity from the coach house owner on how exactly and when exactly he intends to repair and maintain the garage.

Having power googled this issue over the last few days, it seems we're lucky that the coach house owner is so helpful! We're keen to get this moving as otherwise if we lose our vendor on Friday then the chain falls apart anyway.

Is there anything you can suggest that can be provided that might satisfy a solicitor?

absolutelyjess

FYI, our solicitor and our EA feel that the buyer's solicitor is being somewhat pedantic on this point - as you say, a lease agreement exists for a reason, why should it need adding to? However, this does not help us resolve the situation!

HouseBuyer77

how exactly and when exactly he intends to repair and maintain the garage

As and when it becomes necessary? Perhaps ask the vendor precisely what they are expecting?

I guess you could have specific intervals he repaints the exterior for example, but seems pretty excessive.

As G_M says the letter would only muddy the waters, the lease states who's responsible for what. If they wanted to change that they'll need a new lease, that will be expensive and slow down the purchase.

G_M

absolutelyjess wrote: »

Our buyer's solicitor does not believe that the current leasehold agreement is sufficient to protect his client's interests - i mentioned the repair and maintenance details - he want clarity from the coach house owner on how exactly and when exactly he intends to repair and maintain the garage.

OK - so, hard to advise further without

a) seeing exactly what the buyer's solicitor has said (exact quote) in terms of how the lease is deficient, and

b) seeing the exact wording in the lease in relation to a) above

But assuming HouseBuyer is right and the solicitor wants to know (for example) how often re-painting will occur, then the answer is either

1) however often the lease specifies (which it probobly does not), or

2) however often it is required (since let's face it, some buildings on a windy salty shore-line might need it annually while an identical building in a sheltered spot might need it every 10 years!)

AdrianC

absolutelyjess wrote: »

Our buyer's solicitor does not believe that the current leasehold agreement is sufficient to protect his client's interests - i mentioned the repair and maintenance details - he want clarity from the coach house owner on how exactly and when exactly he intends to repair and maintain the garage.

You simply cannot give those assurances on behalf of a third party. It's ridiculous to ask you to.

He could, of course, ask that third party - but if he's got any sense, he'll give a non-committal answer.

Strikes me that the problem's the buyer hassling the solicitor, unless the solicitor is somehow particularly clueless. FTB, by any chance?

G_M

AdrianC wrote: »

Strikes me that the problem's the buyer hassling the solicitor, unless the solicitor is somehow particularly clueless. FTB, by any chance?

I agree. This is a nervous buyer asking his solicitor what future costs there might be on maintenance, and/or for a guarantee the building will properly maintained, and insisting his solicitor ask.

So back to the original solution:

To reassure the buyers ;

* invite them round again
* provide tea and biscuits (OK folks - or cake!)
* invite the freeholder too since he seems amenable
* let them chat and then the freeholder can directly reassure the buyer :

davidmcn

absolutelyjess wrote: »

FYI, our solicitor and our EA feel that the buyer's solicitor is being somewhat pedantic on this point

Then instruct your solicitor to tell their opposite number that (in suitably diplomatic terms). I don't see the necessity and it certainly shouldn't be a deal-breaker - and if the buyers are pushing the point, then they need to tell you exactly what they want rather than you second-guessing it.

absolutelyjess

Our buyers are in Scotland (we're no where near) so no tea and biscuits unfortunately! We've requested the specifics from the buyer and solicitor to pass to 'Mr Coach house' to sign, and no one has got back to us. Our buyers are a retired couple, renting, cash buyers - the dream!)
All the house queries are all sorted, it's just these remaining bits about the freehold garage! Thanks for all the help though, good to know it's not something we can really provide. Fingers crossed, the buyer realises that lease agreements exist for a reason by close of play Friday!

G_M

absolutelyjess wrote: »

I don't think it's the buyer hassling the solicitor, it seems to be the solicitor bring very picky, which is apparently something this man is known for locally (according to our solicitor). (Our buyers are a retired couple, renting cash buyers - the dream!) While I admit pickiness is what I would generally be looking for in a solicitor, it's frustrating here! the house queries are all sorted, it's just these remaining bits about the free hold garage! Thanks for all the help though, good to know it's not something we can really provide. Fingers crossed, the buyer realises by close of play Friday!

In that case the tea & cake solution might still work.

You reassure the buyers, convince them the lease is fine and the freeholder is fine, and then they phone their solicitor & instruct him to ignore this issue and Exchange.

As they are cash buyers, he canot even fall back on his "duty to protect the mortgage lender". So he must carry out his clients' instruction.