Difficult Freeholders

Mattbowes

Hi all, long story but I’d appreciate any advice.

I bought a leasehold flat in 2006 and at the time believed that the previous owner had legally extended into the loft space. My solicitor (now out of business) advises it was all above board and I had supporting paperwork from one of the freeholders giving permission.

Fast forward to 2015 and we wanted to sell and buy a house. We accepted an offer but the buyers solicitors uncovered that the loft conversion was never logged with the land registry and we needed to produce a deed of variation.

We lost that sale and set about trying to find our absentee freeholders. We eventually tracked them down and they, as former flat owners, were surprised to hear that they were freeholders. They all agreed in principal to sign the deed of variation, happy days!

Unfortunately they then collectively decided they didn’t want to be freeholders and instead said they wanted to sell their shares to me. I saw this as a quick win as I could then sign the DoV myself and everything would be sorted.

Unfortunately it’s now late 2018 and they STILL hadn’t instructed a solicitor, and with a growing family we elected to try and sell the property with the outstanding issue at a reduced price.
Clearly I got their attention as they’ve now written to the estate agent and myself ordering me to remove the property from the market pending a meeting they plan to have in 5 days time.
I have a horrible feeling they’re going to refuse to sign the DoV and refuse to allow me to sell the property as they want to force me to buy the freehold.
So my question is; can they stop me from selling and can they force me to buy the freehold instead? It feels like extortion to me.

My alternative would be to pay a builder to put the flat back how it was, but my concern is then that it will affect the value and out of spite they could still refuse the sale.

Any advice or guidance would be appreciated!

Tom99

[FONT=Verdana, sans-serif]A bit more info might help you get a useful reply.[/FONT]

[FONT=Verdana, sans-serif]How many flats in the block? If a freeholder wants to sell I think they need to give flat owners a right of 1st refusal.[/FONT]

[FONT=Verdana, sans-serif]I assume the original lease does not include the loft in the demised area and that is why a deed of variation is required?[/FONT]
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[/FONT][FONT=Verdana, sans-serif]Clearly your previous solicitors comment the all was in order is not correct or you would not have a problem now. What is the supporting paperwork giving permission, is it consent to carry out the work or what? Its possible you may still have a professional negligence claim against them even though they are out of business. They may have run off insurance which is still valid.[/FONT]

[FONT=Verdana, sans-serif]Its not at all clear who the freeholders are, there is more that one by the sound of it are they related?, they were previous leasehold owners of one flat or all the flats?[/FONT]
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[/FONT][FONT=Verdana, sans-serif]They want to sell their shares to you. Do you mean they each own a share of the freehold as joint owners or are these shares in a company which in turn owns the freehold?[/FONT]

[FONT=Verdana, sans-serif]Re the sale, what does your lease say about assignment of the lease? Very often you need to notify the freeholder within a certain time frame but you don't need a freeholders consent to assign.[/FONT]

[FONT=Verdana, sans-serif]What are the terms of you lease eg ground rent and unexpired term?[/FONT]
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[/FONT][FONT=Verdana, sans-serif]I can't see anyone buying as is unless you remodel the flat to the demise you actually have in the lease. What accommodation does the loft provide, would much value be lost and cost involved?[/FONT]

[FONT=Verdana, sans-serif]Is the meeting in 5 days time with you or between the freeholders?[/FONT]
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[/FONT][FONT=Verdana, sans-serif]The certainly can't 'order' you to remove the flat from being advertised and given their previous dilatory approach to dealing with the matter I would not comply and leave it advertised. They seem concerned its on the market so that might jolly them up.[/FONT]