Leasehold - Management company issues

Lukemjp

Hey all,

I've got a question for you all any help you can give will be great. Basically I have had an offer accepted on a flat about 4 months ago and have had a couple of issues with it going through. I know have consent to knock down the wall, however the lease for the flat I'm buying is going to be extended upon completion the issue being this will then make the lease on the flat longer than the lease the management company hold.
Does anyone know how much of an issue this will cause going forward?
Is it essential to get something resolved before completing the purchase?
The management company have already taken a few months over he decision and haven't got back about a potential clause?

Any advise is muxh appreciated.

Many thanks

Luke Prestoe

G_M

Sorry - this seems a confused question

Lukemjp wrote: »

...... I [STRIKE]k[/STRIKE]now have consent to knock down the wall,
Is this relevant to your question, or just superfluous detail?

however the lease for the flat I'm buying is going to be extended upon completion
Do you mean the current ower is extending the lease so you will be buying a longer lease than the current one?

Or YOU plan to extend the lease 'upon' (ie after) you have bought the existing one?

the issue being this will then make the lease on the flat longer than the lease the management company hold.
1) what has the management company got to do with the flat's lease? I assume they are appointed by the Freeholder to .... errrr.... 'manage' the building?
2) If you mean the freeholder, (not the management company), then how can the lease they hold be of a different length - there is only onw lease for the flat. You are buying it (and maybe extending it).


Does anyone know how much of an issue this will cause going forward?
As the issue is unclear it is impossible to answer

Is it essential to get something resolved before completing the purchase?
It depends what you are hoping to achieve
The management company have already taken a few months over he decision and haven't got back about a potential clause?
'Clause'? What clause?

I suspect you need a better understanding of what you are buying and what you want to achieve.

If you are doing your own conveyancing - stop!

If you have a conveyancer working for you, make an appointment, go in, and get things explained to you.

(hope you're not using an online conveyancer.....)

Lukemjp

Thanks for the quick reply.

Ignore the first part about the wall as that is sorted.

The extension of the lease will be paid for buy the seller but they require the money from the sale of the flat to be able to extend. So I will be buying it with a longer lease.

Basically my solicitor has informed me that the management lease they have with the landlord will be shorter than my extended lease on the flat. So the main issue is who will take ownership of the flats when the management companies lease runs out?

The clause is something that my solicitor tried to put into the lease on my flats extension. So therefore it will say that it will be the landlords responsibility if the management company do not renew their current lease they hold.

Hope this helps.

eddddy

Lukemjp wrote: »

Basically my solicitor has informed me that the management lease they have with the landlord will be shorter than my extended lease on the flat. So the main issue is who will take ownership of the flats when the management companies lease runs out?

The clause is something that my solicitor tried to put into the lease on my flats extension. So therefore it will say that it will be the landlords responsibility if the management company do not renew their current lease they hold.

It's a good question! (But perhaps the question needs clarification.)

So the flat has a tri-partite lease - between leaseholder, freeholder and management company...

- The management company covenants to maintain the building
- The freeholder probably covenants to do almost nothing


If the lease is extended, the extension will be a 2 party agreement - between the leaseholder and the freeholder....

- so nobody will be covenanted to maintain the building in the extension period.

So your solicitor is trying to get a clause added to the extension, that makes the freeholder covenant to maintain the building.


I too would be interested to know the outcome, as I was recently looking at a flat with a tri-partite lease.

Lukemjp

Yes that's exactly it. He was to put a clause in place so someone takes ownership when there lease expires, or to get them to extend there current lease.

The issue is this is holding everything up and has done for several months already as they just haven't given an answer on either.

If we carry on without something in place I'm thinking is this just going to be a future problem?

Any help or information is greatly appreciated.

Thanks