Builder has bought the freehold to my property

Sassaliah

I live above a florist on a very small parade of shops in a village (four shops). Each shop has a flat above it. The florists own the freehold and I have a leasehold for the flat. I found out last night that a builder offered them an amount "they couldn't refuse" to buy the building and grounds (huge garden) and they accepted three weeks ago. This builder has also bought another shop with flat above and with access. From the sounds of it he wants to build in the gardens at the back of the shops. I currently have unofficial access to the gardens and am not overlooked by anyone. I can also use the parking spot to the shop unofficially overnight. As far as the lease is concerned, I pay minimal ground rent and maintenance to the current freeholder but if anything big needs to be done, we sort it out between us. I only moved in in June. The florists don't know what their shop will be turned into.
How does this affect me as far as my lease, maintenance and rights of access are concerned. How can I also find out what the builder has planned?

moneyistooshorttomention

1. What have you got in writing?

a. Re what costs you are due to pay for ground rent and re the maintenance costs.

b. Your access to the garden and parking.

2. Have you got together yet with the other households affected by this? It would be as well if you all present a "united front" to this builder.

I suspect you are correct that he wants to build on your garden. Personally - I would be checking that he can't find an excuse to get hold of the buildings too (ie not just the freehold of them). I'm guessing he will want to up the ground rent/maintenance costs as much as he can possibly find an excuse to do. It's a given he will try to ensure it's his firm that gets to do maintenance work from here on in - rather than competitive tendering for it. You need to check whether you can prevent this.

anselld

Sassaliah wrote: »

.
How does this affect me as far as my lease, maintenance and rights of access are concerned. How can I also find out what the builder has planned?

It does not affect you official rights, ie those written in the Lease. It just means you will pay ground rent an maintenance charges to the Builder rather than the florist.

It sounds like you do not have any rights to the parking space or the garden so any unofficial use may get stopped at any time.

Find out what he is up to?... Ask. Most developers prefer to keep locals onside if possible so they don't tend to hide things that will become public in due course anyway.

anselld

moneyistooshorttomention wrote: »

I suspect you are correct that he wants to build on your garden. Personally - I would be checking that he can't find an excuse to get hold of the buildings too (ie not just the freehold of them). I'm guessing he will want to up the ground rent/maintenance costs as much as he can possibly find an excuse to do. It's a given he will try to ensure it's his firm that gets to do maintenance work from here on in - rather than competitive tendering for it. You need to check whether you can prevent this.

It is not the OPs garden or parking.
The Builder cannot "up the ground rent".
Maintenance costs need to be properly accounted by the Freeholder and there are mechanisms to challenge any profiteering.
The Builder cannot "get hold of the buildings too". He can only get a Leased demise if the Leaseholder forfeits or sells or if the Lease expires.

red40

Unless things have changed much since i owned a leasehold flat (2003), I thought that leaseholders had first refusal.

http://www.lease-advice.org/advice-guide/right-of-first-refusal/

always_sunny

And also they wouldn't be able to change the terms of the existing lease unless mutually agreed (i.e. ground rent, etc) and if they were to alter the garden with a new build they would need permission which you can voice your opinion?

eddddy

red40 wrote: »

Unless things have changed much since i owned a leasehold flat (2003), I thought that leaseholders had first refusal.

http://www.lease-advice.org/advice-guide/right-of-first-refusal/

As that link explains, the building must qualify. It sounds like the building in question only contains 1 flat.

There are three requirements for the premises to be subject to the RFR:

- they must contain at least two flats; and
- no more than 50% of the premises to be in non-residential use; and
- more than 50% of the flats in the premises must be held by ‘qualifying tenants’.

And in any case, typical freeholds including a shop tend to cost tens of thousands, if not hundreds of thousands.

Sassaliah

Thanks so much for all the advice. I thought it was the case re what's already in the lease etc.

I think the builder is trying to buy the freehold (and presumably the gardens) for all four shops however there is some resistance from some of the owners however they are all in need of refurbishment and new life.

I've asked the florist for the builders details so I can contact him. I figured if I could speak to him early enough then I can voice my concerns and maybe come up with mutually beneficial requirements for long term gain for both of us. You never know!! ����

moneyistooshorttomention

Sassaliah wrote: »

I've asked the florist for the builders details so I can contact him. I figured if I could speak to him early enough then I can voice my concerns and maybe come up with mutually beneficial requirements for long term gain for both of us. You never know!! ����

Somehow I doubt that - ie getting your mouth stopped with gold...

In my last area - ie the overcrowded South of England - I'd have fought tooth and nail rather than sell 1" of land to a builder for development. Zero chance of my doing so - no matter how much I'd been offered for it.

Here - there is more space and it isn't over-built and I could give a list of reasons why I don't think it will be for decades - and I would be prepared to sell my property accordingly for enough money to make it worth my while. But, I can't see a builder handing over at least twice what the house itself is worth - so it ain't gonna happen...

Mind you - if there is a builder out there that is looking for a fair-size plot in West Wales at double the house value.....(EDIT - quick check on house prices - make that three times the house value.....)....

I'm guessing you're in my situation 2 in all likelihood - so I doubt they'd pay you enough...

Hoploz

Sell. Now.

Without asking the builder if he intends to build a big block of flats outside your building on that nice garden. Because if you know that's his plan, you'll have to divulge this to a buyer. As it stands you have no knowledge of his plans for the future and are selling .... because you want a bigger place ... Yes?

Grenage

Given the information you've supplied, I would also be looking for greener pastures.