Freehold - Leasehold selling issue

eddddy

theblagger wrote: »

Also is it a criminal offence if the seller does not offer the other 50% freeholder first refusal on their 50% freehold when selling?

That's an illogical question. (I guess you've read about the 'Right of First Refusal' and got confused.)

FWIW, two people jointly own the freehold, so if a criminal offence is committed by the freeholder, both people would be guilty of it.

You will get much better answers if you explain the situation and your goal.

theblagger

Here goes
I am posting on behalf of a friend and their neighbour
Tenant has been there 7 years with sibling
New legalisation meant flat had to be lienced to LA in Dec 2016
Done, but cost passed to tenant in the form of a rent increase (letter received explaining this)

also deposit taken at beginning of tenancy has not been held in a protection scheme.

Then June 2017 advised by relation/ son of landlord the flat is going to be sold-the tenant has been offered first refusal , but has no chance of buying it

The neighbouring flat is wholly owned by a different owner, who has maintained the property , its a house converted into 2 flats whilst tenant landlord has been totally absent

Neighbour has noticed major issues , i.e structural, damp, etc on landlords property which will effect his property if not addressed

So if landlord is selling , does he have to declare this to prospective buyer...
or leave it to the prospective buyer for when they do a survey

regarding freehold which is 50% owned by landlord/neighbour

i saw this link
http://www.lease-advice.org/advice/fact-sheets/right-of-first-refusal-fact-sheet/

Legislation: Landlord & Tenant Act 1987

What is it? Where a freeholder is disposing of an interest in the freehold they are required to offer leaseholders the right to buy that interest first before selling it to a third party.

G_M

The tenancy is a red herriing.

The relationship between the landlord (leaseholder) and tenant is restricted to that landlord and tenant (and perhaps autorities like Environmental Health).

The sale of the lease is entirely separate. Any faults/issues with the property should be flagged up by the buyers survey.

The sale of the lease will most probably involve the potential buyer seeking certain reassurances from the freeholder (as previously explained). If the freehold is shared, no sensible buyer would accept reassurance from the joint freeholder who was selling his lease, because of the clear conflict of interest.

eddddy

theblagger wrote: »

Neighbour has noticed major issues , i.e structural, damp, etc on landlords property which will effect his property if not addressed

So if landlord is selling , does he have to declare this to prospective buyer...
or leave it to the prospective buyer for when they do a survey

The seller does not have to declare anything.

But the bottom line, is that a sensible seller would sort this kind of stuff out before selling, in order to get a better price.

There are many investors who would buy properties with problems, disputes etc, if the price is cheap enough.

theblagger wrote: »

Then June 2017 advised by relation/ son of landlord the flat is going to be sold-the tenant has been offered first refusal , but has no chance of buying it

So the owner may choose to sell it with a tenant, or evict the tenant and sell it vacant.

theblagger wrote: »

also deposit taken at beginning of tenancy has not been held in a protection scheme.

I think that has to be dealt with before the tenant can be evicted.

theblagger wrote: »

i saw this link
http://www.lease-advice.org/advice/fact-sheets/right-of-first-refusal-fact-sheet/

Legislation: Landlord & Tenant Act 1987

What is it? Where a freeholder is disposing of an interest in the freehold they are required to offer leaseholders the right to buy that interest first before selling it to a third party.

In this case, that would be like saying the joint freeholders Mr A and Mr B have to give the leaseholders Mr A and Mr B first refusal before selling.

i.e. Mr A and Mr B could buy the freehold from Mr A and Mr B.

i.e. You'd just end up where you started.

theblagger

eddddy wrote: »

The seller does not have to declare anything.

But the bottom line, is that a sensible seller would sort this kind of stuff out before selling, in order to get a better price. yes I agree

There are many investors who would buy properties with problems, disputes etc, if the price is cheap enough. yes



So the owner may choose to sell it with a tenant, or evict the tenant and sell it vacant....interesting



I think that has to be dealt with before the tenant can be evicted.

Yes I believe a S21 has to be served , as its a periodic tenancy, the original tenancy ran out after 12 months, no new tenancy agreement was forthcoming

although landlord always reiterated to the tenant that he could stay there as long as possible.

In this case, that would be like saying the joint freeholders Mr A and Mr B have to give the leaseholders Mr A and Mr B first refusal before selling.

i.e. Mr A and Mr B could buy the freehold from Mr A and Mr B.

i.e. You'd just end up where you started.

I have advised the tenant to stay as long as possible, as this was a shock to them.