Problems with Garage Lease

Wrinkles_2

I would really appreciate some advice...

I bought a leasehold garage at auction recently. When my solicitor checked the lease, he found that the garage lease was linked to a flat lease and that the garage could only be leased to the person owning the flat. The mortgage on the flat was also stated on the garage lease.

My solicitor told the vendors solicitor but they just said that we should complete and sort the lease problems out later. The day before completion it transpired that the Vendor had not notified the landlord of the sale nor had he notified the mortgage company.

I didn't complete and now I have had a Notice to Complete from the vendor's solicitor. My solicitor has written back and said that as the Vendor is not in a position to complete the notice is invalid. My solicitor has also said that I want my deposit back plus costs because the garage should never have gone to auction.

My solicitor has also suggested to me that the Vendor might be able to get a Deed of Variation on the lease which would allow him to sell the garage lease. However, this would cost ME a further £700 in solicitor's fees, I have no idea what this Deed of Variation may say and also how long it will take to produce.

There has been no word from any of the solicitors and the 10-day notice period of the Notice to Complete is rapidly approaching.

If anyone has advice or has been in a similar situation I would be interested to hear your views. Thanks.

Richard_Webster

Sorry, but this is an object lesson in why people should get their solicitors to check the legal stuff before they go to auction.

Interesting legal point. If the seller can get the garage removed from the mortgage then it becomes a wonderful grey area.

Your solicitor is right to argue that the seller cannot legally transfer the garage. I would do the same if I was acting for you.

It might be argued that the Land Registry will not be concerned about the restriction in the lease and would give effect to the transfer (assuming the mortgage was dealt with) but then you could incur the wrath of the landlord who would claim that your separate ownership was in breach of covenant!

I expect that is what the seller's solicitor will say - that it is up to you to satisfy yourself that the seller can sell without lumbering you with any breaches of covenant.

mlz1413

I've just come across deed of variation because a lease hold flat was being sold as part of the old lady's estate. Because named person on lease could not sign the contract (as she's passed away) then the lease (or deed) had to be varied so the executor of will could sign it. This took a while to sort out but I think that was mainly solicitors rather than management company.

But my main question would be has the management company been asked if they would allow a garage to be owned by someone not living in flats? They are likely to charge a fee for any work they do and if it did all go through how much would you have to pay the management company pm/pa?

MLZ