Flat with a head lease?

Winterrose

I am currently in the process of buying a flat but the process is being delayed by the fact that there is a head lease in between the current owner's leasehold and the freeholder.

The freeholder is a family property management company and the head lease was granted to another member of that same family, so my solicitor is trying to get an answer on why this was introduced, but apparently the seller's solicitor is not providing a satisfactory explanation. It's been constant back and forth for weeks and there doesn't seem to be much progress at all, and the seller is contacting me frequently to move things forward so it's becoming quite stressful.

My solicitor hasn't provided a great deal of info to me either, so I wanted to ask...what is the risk with a head lease of this nature?

Thanks

Tom99

[FONT=Verdana, sans-serif]Whilst it might be interesting to know why the head-lease was created, is it essential?[/FONT]
[FONT=Verdana, sans-serif]You should obtain a copy of the headlease if you don't already have one.[/FONT]
[FONT=Verdana, sans-serif]If the headlease expiry date is less than 90yrs beyond the expiry date of your lease it may make extending the lease a little more complicated that's all.[/FONT]
[FONT=Verdana, sans-serif]https://www.lease-advice.org/article/stuck-middle-lease-extension-flats-rights-intermediate-leaseholder/[/FONT]

SmashedAvacado

You don’t need to know why

You need your solicitor to advise you if as a result of there being a headlease, there are any issues

Headleases are not unusual
Your lawyer is potentially wasting everyone’s time unless he has spotted sone unusual provision that he is really trying to get to the bottom of

Richard_Webster

The headlease could be of the whole building rather than just the flat in question. That could complicate matters, perhaps with your lender, but you could also have obligations towards the other flat lessees - the freeholder could have "passed the buck" of doing the management, insurance, etc to you. Even if there is a managing agent actually doing it - they might be technically responsible to you. So there is quite a lot to check and sort out.

SmashedAvacado

Richard_Webster wrote: »

The headlease could be of the whole building rather than just the flat in question. That could complicate matters, perhaps with your lender, but you could also have obligations towards the other flat lessees - the freeholder could have "passed the buck" of doing the management, insurance, etc to you. Even if there is a managing agent actually doing it - they might be technically responsible to you. So there is quite a lot to check and sort out.

That might be the case, but at no point is it relevant to ask why this was done. What is relevant is to understand the impact. The OP is clear in saying that his solicitor is asking why the structure was put in place - which isnt the question that ought to be asked.

Winterrose

Thanks everyone. From what I can understand and another letter my solicitor has sent through today, there is no risk for me in this arrangement as I will still acquire leasehold title absolute and the landlord cannot change the terms of the lease without my agreement.

It seems that he's worried that the head lease has been granted to the freeholder's family member for non-innocent reasons, but again, if I'm protected from any risk then it doesn't seem all that relevant to me?

It is the only flat in the block with this arrangement, which I think is also why he wants to know.