Deed of Variation for error in lease

Jigglebiz

Despite my sol making the undertaking for the freeholder to do the DOV the freeholder has not yet confirmed they agree to do it.

The lease error is the freeholder’s mistake in the first place.

If the freeholder refuses to do the DOV we will lose the sale and then would we have to take them to court?!

AdrianC

Jigglebiz wrote: »

If the freeholder refuses to do the DOV we will lose the sale and then would we have to take them to court?!

What for? You can't take 'em to court over the lost sale - the buyer chose to walk, with zero legal tie to the sale. They could have walked at any time over anything. The freeholder is under no obligation to agree any DoV to the lease that you freely bought into a few years back.



You could issue a small claim over allegedly overpaid ground rent, but it won't be clear-cut due to the confused wording. That's about it. It won't help with any future sale.

Jigglebiz

So we end up with a property that is unsellable because of the solicitor not noticing this when we bought it? If the solicitors firm accepts liability for that what happens then?

AdrianC

Jigglebiz wrote: »

So we end up with a property that is unsellable because of the solicitor not noticing this when we bought it? If the solicitors firm accepts liability for that what happens then?

It's not "unsellable".

All it needs is for a putative buyer's solicitor to have the same attitude to the wording as yours did, and as the initial buyer's did - rather than actually being diligent and competent.

So far, it's 2:1 in your favour...

Jigglebiz

All it needs is for a putative buyer's solicitor to have the same attitude to the wording as yours did, and as the initial buyer's did - rather than actually being diligent and competent.

Yes that is basically what my sol has said!

Jigglebiz

We’ve been advised the freeholder will let us know on Monday if they authorise the DoV. I would expect them to since it’s £1700 of easy money...but don’t want to second guess it because we’re screwed if they don’t.
In which case we need to wait for the buyer to pull out (to avoid EA fees) and remarket it looking for someone with a semi negligent solicitor.:cool:

getmore4less

You still need to resolve the issue you are paying too much ground rent now.

Worst case case clause 2.2 kicks in at 25 years with a base indexed from £200.

Some buyers may be happy with that on the say of the freeholder saying £100.

What happens when there is a new freeholder that does not agree.

Jigglebiz

According to my solicitor the ground rent we pay now is correct as it is indexed to inflation.
We are pursuing the DOV to amend the discrepancy in the lease.
I will be trying to claim back the costs from the solicitor.

AdrianC

Jigglebiz wrote: »

According to my solicitor the ground rent we pay now is correct as it is indexed to inflation.

Except the RPI increase isn't due to kick in until year 25.

Jigglebiz

Ok I will check that - thanks