uncooperative freeholder

dgaidge

I posted another thread called "Trying to sell my flat despite uncooperative freeholder" and there has been a bit of development.

I am currently selling my flat but the freeholder is very difficult.

I have owned the flat for 15 years and he has never set up a management company, or done any maintenance to the building. I don't have evidence of insurance, although he is saying there is an insurance in place but won't give the details.

I have not paid ground rent or insurance for years because I have not received any invoice and I do not know where to pay. I have chased the free holder on occasions to ask him for the info and to ask to pay what I owe, he has never sent me anything.

Without management company or insurance certificate, the value of my flat is much lower because lenders won't lend so I need a cash buyer, willing to take on this awkward situation.

Potential buyers are asking for insurance info which I am unable to provide, so they tend to run away. And they see the fact that there is no management company as a big problem too. The price I am selling at is reflecting the situation, but it is still very very hard to find a buyer willing to take the risk (I bough the flat from the freeholder so that was not a problem at the time for me).

My conveyancer is talking to his solicitor and we are waiting and waiting for the information which they keep on promising but is not coming. Yesterday, the owner of another flat in the same building who is also trying to sell, heard from the freeholder (after sending him many MANY emails), the freeholder is now saying that:

(extract of email from the freeholder)
(....) Just to advise there is significant rent and insurance rent arrears since your ownership.
Mr XXXXXXX of XXXXXXX will sort of this and we shall produce an arrears statement which shall need settling on or prior to completion.

We have NO Idea how much the arrears statement will be and if we can pay it.

Can he just do that? Ignore us for years and suddenly charge us all in one go? What kind of evidence do we need?

Many thanks!

eddddy

dgaidge wrote: »

Can he just do that? Ignore us for years and suddenly charge us all in one go? What kind of evidence do we need?

The freeholder can demand up to 6 years of back ground rent...

...plus service charges for anything they paid for within the last 18 months.


But... you're in a difficult position. If the freeholder demands you pay anything from over 18 months ago, and/or anything that is unreasonable, you could end up arguing for weeks/months over it. And in the meantime your buyer walks away.

One approach might be to pay whatever the freeholder asks 'under protest' (to get the sale sorted), then go to a tribunal to claim the unreasonable amount back.

dgaidge

Hi eddddy, thanks for your reply.

Where can I see in some official legislation that he can ask up to 6 years of ground rent? Do you have any link? Do you know how many years of building insurance he can claim back? I am just a bit worried how much it will cost in insurance.

Thanks!

Mistermeaner

6 years in statute of limitations

re the leasehold at the time of purchase you should have signed or agreed whatever the leasehold arrangement is.... that will specify what you now owe in arrears

If you bought the flat without agreeing a leasehold I would look to sue whoever advised during the original purchase as that would be negligence of the highest order

I have no idea where the law stands if no amount was ever agreed - I would assume in lieu of any stated figure you either pay zero or peppercorn - it would simply not be reasonable for the free holder to pop up and suddenly decide you owe him £XYZ ---- the orginal purchase price paid for the flat would also have factored in the ground rent payable to the freeholder so surely must have at least been discussed at that time (even if not recorded?)

dgaidge

HI Mistermeaner, I know the ground rent is £25 per year so I am not too worried about that but I am worried about the building insurance that the freeholder has not asked for. I knew it was owed and have emailed him to ask him to send us some info, but he never told us. Do you think he can ask for 6 years max?

Thanks

robatwork

dgaidge wrote: »

HI Mistermeaner, I know the ground rent is £25 per year so I am not too worried about that but I am worried about the building insurance that the freeholder has not asked for. I knew it was owed and have emailed him to ask him to send us some info, but he never told us. Do you think he can ask for 6 years max?

Thanks

How do you "know" it's £25 if you have nothing in writing?

dgaidge

The £25 ground rent is specified in the lease, I am worried about the building insurance as I don't know how much it is a year.

Clutterfree

dgaidge wrote: »

The £25 ground rent is specified in the lease, I am worried about the building insurance as I don't know how much it is a year.

You said you weren't even sure if he ever had insurance.
I don't know if he can claim back 6 years but if he can I'd ask to see proof that he actually held the insurance for those years, i.e. Receipts or policy documents.

Mistermeaner

The lease should say something about insurance too

dgaidge

You said you weren't even sure if he ever had insurance.
I don't know if he can claim back 6 years but if he can I'd ask to see proof that he actually held the insurance for those years, i.e. Receipts or policy documents.

*how do you do that yellow paragraph thing?!*

I have no recent evidence of insurance as he does not answer any questions by email (or has for years). His solicitor has told my solicitor that there is insurance, but we are still waiting to see evidence.

dgaidge

I will double check the lease regarding insurance but I am pretty certain there is no amount for insurance.