Should we notify mortgage company??

blaaauth

I'm new to this forum, fairly got the answer. Guest101 just said right, look at your agreement that the basic solution.

luvchocolate

I believe the council tax only gets reviewed when the property is sold.
My son bought a house with a large extension and the council tax went up a band on completion.

lincroft1710

luvchocolate wrote: »

I believe the council tax only gets reviewed when the property is sold.
My son bought a house with a large extension and the council tax went up a band on completion.

Correct. Where there are extensions/alterations by current owner, Council Tax band can only increase when the property is sold. New owner would pay on increased band.

eddddy

You'll need to get your lease varied to reflect the new extent of the flat. Your lender will need to consent to that, and they'll insist that you use a solicitor.

Have you all agreed the maintenance/repair issues?

For example...
- Now you have a bigger flat will you pay a bigger proportion of the bills?
- In 15 years time, when the roof on your extension needs repairing, will the cost be split amongst all the leaseholders?

The solicitor will ask all these types of questions.

Iain79 wrote: »

Everyone fine with this got it all in the email.
The flat owners are the free holders so we got agreements from them all.

Is that agreement 'subject to contract', or contractual agreement?

In law, contracts relating to land (leases, freeholds etc) are not the same as other contracts. An informal email is almost certainly invalid as a Land Contract.

If I were you, I would check with a solicitor.

[Deleted User]

eddddy wrote: »

You'll need to get your lease varied to reflect the new extent of the flat. Your lender will need to consent to that, and they'll insist that you use a solicitor.

Have you all agreed the maintenance/repair issues?

For example...
- Now you have a bigger flat will you pay a bigger proportion of the bills?
- In 15 years time, when the roof on your extension needs repairing, will the cost be split amongst all the leaseholders?

The solicitor will ask all these types of questions.

Is that agreement 'subject to contract', or contractual agreement?

In law, contracts relating to land (leases, freeholds etc) are not the same as other contracts. An informal email is almost certainly invalid as a Land Contract.

If I were you, I would check with a solicitor.

Well thanks for the info but the fact next door has built an extension (smaller than ours) they sold with no issue.
We need to update the lease anyway and will add the extenstion.
We asked all leaseholders if they happy for us to build on our own garden. They all agreed in email.
If need to be done through solictors I worry about that later as sure nothing much can be done after it built. When we have our management meeting next month we need them all to sign and none of the landlord will read the lease hold stuff so don't think it be an issue. As for lender I phoned today they said they don't need to know so left it at that.

[Deleted User]

Also the lender have nothing to do with the leasehold. They dont even know we own a share the leasehold. It 2 seprate thing. Thou to sell the flat you have to give your 25% share with it (It a none profit company).
When the freeholder hand the land to 4 flat we signed the forms sent them back to our solictors and that done. We are directors of the company that own the leasehold if that make sense.

I had so many times have to sign someone share over to the person buying the flat.

sparky130a

Summer17 wrote: »

Well thanks for the info but the fact next door has built an extension (smaller than ours) they sold with no issue.
We need to update the lease anyway and will add the extenstion.
We asked all leaseholders if they happy for us to build on our own garden. They all agreed in email.
If need to be done through solictors I worry about that later as sure nothing much can be done after it built. When we have our management meeting next month we need them all to sign and none of the landlord will read the lease hold stuff so don't think it be an issue. As for lender I phoned today they said they don't need to know so left it at that.

Summer17 wrote: »

Also the lender have nothing to do with the leasehold. They dont even know we own a share the leasehold. It 2 seprate thing. Thou to sell the flat you have to give your 25% share with it (It a none profit company).
When the freeholder hand the land to 4 flat we signed the forms sent them back to our solictors and that done. We are directors of the company that own the leasehold if that make sense.

I had so many times have to sign someone share over to the person buying the flat.

Woah there!

I have an Email from my best mate in deepest darkest Africa promising me £5 million. Doesn't make it true.

If you're going to do this do it right. And that means legal help.

[Deleted User]

It will be done and signed by all owners.. some lives abroad so can't signed till they all come back and last one to sign wont be back till sept..
And got get the lease all drawn up again. They left me to deal with getting the lease and they don't even want a copy. build start in 2 weeks waited 6 months for job to start so aint backing out now and putting on hold. Wish I never thought of this questions to be honest.

The Lender said they not intrested basically said build what you want. As long as I not de-value our property.

eddddy

Summer17 wrote: »

Well thanks for the info but the fact next door has built an extension (smaller than ours) they sold with no issue.

If you do all the legal stuff correctly, you can sell with no problem - so I guess 'next door' did everything correctly.

If you don't do the legal stuff correctly, your property can become unsaleable.

Summer17 wrote: »

If need to be done through solictors I worry about that later as sure nothing much can be done after it built.

That's a very fundamental misunderstand of the law.

It's incorrect to say that once you've breached the terms of a lease, nobody can do anything about it.

In a very extreme case, your joint freeholders might be able to get a court order instructing you to demolish the extension.

So it might be worth investing a few hundred pounds in getting legal advice from a solicitor.

[Deleted User]

eddddy wrote: »

If you do all the legal stuff correctly, you can sell with no problem - so I guess 'next door' did everything correctly.

If you don't do the legal stuff correctly, your property can become unsaleable.



That's a very fundamental misunderstand of the law.

It's incorrect to say that once you've breached the terms of a lease, nobody can do anything about it.

In a very extreme case, your joint freeholders might be able to get a court order instructing you to demolish the extension.

So it might be worth investing a few hundred pounds in getting legal advice from a solicitor.

No neighbour sold there bit with nothing saying we agree for their extenstion to be built, it was just agreement in a mangenment meeting 4 years ago. His solicitor did raise this and new owners (they were cash buyers) wasn't bother as long we get all the agreement soon after they brought the flat, (the solicitor we use for the management company didn't even care as no one disputing these) which we are planning to do in a few months when the other two are back in the country.
So we know one person will defo signed it or he wont get his.

In theory to be on the safe side we should not build until they all sign and agreed for me to build on my garden, which won't be till sept. It's a risk I will have to take and go ahead with it starting next week. If I known before I would of done this ages ago.
Thanks for you input but when putting for planning premisson and that I personally think this should be raise somehow.
So many people I know have built extention and not told their lenders and some are now panicking after I told them.