Leasehold House Purchase With an Illegible Lease

henry9066

Hi, After 43 years together my wife and I have decided to go our separate ways. My wife has bought a small 2 bedroom leasehold house and the sale is due to be complete in about 1-2 weeks. She is a cash buyer so will not require a mortgage. The house we share at the moment is sold and we expect to complete at the same time as the sale of my wife's house.
But there are some concerns that I have about my wife buying this house.

1. Nobody can trace the freeholder
2.On the Land Registry plans it shows that there are 2 separate plots of land under this small house and our solicitor has advised us that there must be 2 separate leases.
3. The sellers solicitors have sent our solicitor a copy of one of the leasehold agreements that is totally illegible and we cannot read a single word and no other copy is available. We believe there is no copy of the other leasehold agreement as nothing relating to it has been sent to our solicitor.
4. Our solicitor has advised my wife as to the possible pitfalls of buying a leasehold house with a missing freeholder and a leasehold agreement that nobody can read.
5. My wifes estate agent and the sellers solicitor are urging her to accept an indemnity policy for the missing agreements & freeholder but after carefully reading our solicitors advice & a copy of the indemnity policy I think my wife should walk away and buy another house. Trouble is I think her heart is ruling her head because It is a lovely little house and close to where she works as she does not drive and wants to accept the indemnity policy. Any advice will be very much appreciated because we are getting pressure all round to agree to an indemnity policy and complete both sales very soon. Regards Henry

bouicca21

I bought my flat with an illegible lease. I was also under heavy pressure from the EA and the seller's solicitor. I think that sort of pressure is indicative of a serious problem.

In my case it was reasonably easy to sort out. The freeholder was known, so was the length of the lease. My solicitor got cast iron guarantees about a new lease and ensured that the seller would pay all costs. In hindsight I think I should have played hard ball and gazundered.

Without knowing how to contact the freeholder, your ex can't do that, and without a lease presumably you can't know how long it is, so I think you need the advice of the land registry rep plus of course get her to listen to her solicitor. The EA and the seller's solicitor aren't working for her, so their advice is deeply dodgy.

KRB2725

If you are separating, let her make the decisions about her onward purchase.

(on the assumption that there is an agreed financial split and the onward purchase is nothing to do with you financially)

[Deleted User]

Do not buy it. Do not buy leasehold and especially this one.You are not buying a home, you are renting as a tenant. You only own the home if you are a freeholder. Your solicitor should have said that.

If it was cheap and had a 999 year lease without any covenants it might be worth it. You have been warned!!

this is the site you need: https://www.leaseholdknowledge.com/

xylophone

http://www.fridaysmove.com/vesting-orders-explained-how-buy-freehold-where-your-landlord-missing/285

may be worth a read.

henry9066

Thank you very much for your reply. Last week the sellers solicitors promised that a clear copy of both leases had been sent to our solicitors but when I went on Thursday the only copy they have received is of the illegible lease. I think they are hoping that my wife agrees to the indemnity policy. When I go with my wife to our next appointment with our solicitors I will ask what would be the worse case scenario should my wife go ahead with the purchase. At least then she will have heard the advice first hand and then she can make her own mind up.

I bought my flat with an illegible lease. I was also under heavy pressure from the EA and the seller's solicitor. I think that sort of pressure is indicative of a serious problem.

In my case it was reasonably easy to sort out. The freeholder was known, so was the length of the lease. My solicitor got cast iron guarantees about a new lease and ensured that the seller would pay all costs. In hindsight I think I should have played hard ball and gazundered.

Without knowing how to contact the freeholder, your ex can't do that, and without a lease presumably you can't know how long it is, so I think you need the advice of the land registry rep plus of course get her to listen to her solicitor. The EA and the seller's solicitor aren't working for her, so their advice is deeply dodgy.

henry9066

Thank you very much for your reply. Yes there is an agreed financial split between us.

My reason for posting on here has nothing to do with finance its more to do with my duty of care for my wife which I promised to her the day we got married and will remain with me until one of us dies. I just don't want her to step into a mine field if it can be avoided.


If you are separating, let her make the decisions about her onward purchase.

(on the assumption that there is an agreed financial split and the onward purchase is nothing to do with you financially)

Slinky

henry9066 wrote: »

My reason for posting on here has nothing to do with finance its more to do with my duty of care for my wife which I promised to her the day we got married and will remain with me until one of us dies.

What a thoroughly decent man you sound.

henry9066

Thank you very much

henry9066

Thank you for your reply, I really do appreciate any advice I can get and will read this today.

For some reason when I try to copy and paste your link for my reply I get a message saying that links are not allowed? So I have copied some of it.


/vesting-orders-explained-how-buy-freehold-where-your-landlord-missing/285[/url]

may be worth a read.

sammyjammy

Henry if you want to quote one of the other replies in your post just click the quote button under their post.