Unmanaged Leasehold

super9tv

Hello! I am currently near completing on a ground floor victorian terraced house in London.

It is a leasehold, but having gotten the vendors lease documents back it appears that it is not managed (i.e. we're responsible for any repairs and upkeep).

I'm trying to get more information from my solicitor at the moment, as my concern is that what are the legal aspects of this sharing. There is another flat in the building (1st floor) so for example on something like getting guttering replaced, what aspects bind the 1st floor flat owner to paying half?

Likewise, if the roof caves in, I presume we are also liable for 50% of the cost of repair. There is building insurance in place of course.

Any advice or previous experience much appreciated!

eddddy

The lease will specify what the leaseholder is responsible for maintaining, and what the freeholder is responsible for maintaining.

It will also specify how the freeholders maintenance costs are allocated to leaseholders (e.g. 50% each).

The lease is a binding agreement.


So a typical lease might say the roof is the responsibility of the freeholder, and maintenance costs are 50% to each leaseholder.

So if the roof starts leaking, the freeholder has to repair it and charge the leaseholders.


BUT... freeholders and leaseholders sometimes voluntarily agree to other arrangements. e.g. The roof is leaking, so the leaseholders sort out the repairs and the allocation of costs between them. (and the freeholder doesn't get involved.)

super9tv

Thanks Edddy, I will go over the lease document with a fine toothed comb again.

However... pretty sure there was nothing pertaining to the split of the bills between parties, and that's what was upsetting my solicitor.

Guess that's a big 'avoid' if it's the case?

eddddy

super9tv wrote: »

However... pretty sure there was nothing pertaining to the split of the bills between parties, and that's what was upsetting my solicitor.

In that case, you can probably apply to a property tribunal to get the lease varied:

4.1 Variation of single leases (flats)

Any party to a long lease of a flat may make an application for it to be varied. The grounds for the application to the Tribunal to vary a single lease are that the terms of the lease fail to make satisfactory provision in certain areas. These are:

• for the repair and maintenance of the flat, or the building, or land or buildings let to the leaseholders or over which they have rights;
  
• for the computation of the service charges in terms of the proportion of the charge payable by each flat in relation to the whole building, if the individual proportions add up to more or less than 100%

;

See: https://www.lease-advice.org/advice-guide/application-to-the-first-tier-tribunal-property-chamber-2/

BUT... I would only go down that route if you enjoy a challenge, you've taken some legal advice (a conveyancing solicitor may not be experienced in this area), and the flat is sufficiently cheap to make this hassle worth it.


Having said that, check the lease in detail. It would be very unusual to say nothing about maintenance. (Some leases deal with this by saying the upstairs flat is responsible for the roof, the downstairs flat is responsible for the foundations etc.)