S/O Lease ‘quirk’

Altior

Hey all.

So I’ve been living in a 25% S/O property for ten years, love where I live and have almost finished my mortgage.

The rent part is very reasonable and I could simply continue paying rent only for a fraction of local private rental costs. However I’m in a decent place financially and considering staircasing to 100%.

So the quirky part is that the property is essentially a 1st floor flat but on the ground floor I have my own front door, external steps to the door, a tiny front garden, small footwell area (inside the front door where the fuse box is), a staircase leading to my landing and also a storage area to the side, accessed from outside. Nobody else has access to these areas. My living area sits above a neighbour’s car port on one side and on the other side sits above the way in to the private forecourt where a few neighbours park and can access their garden.

On the lease it reads the ground floor is not included in the property (along with my allocated car port).

So my query for the experts before I outlay anything is what this means if I staircase to 100%. Obviously the front door to the property (and stairs to the landing) is exactly that. It’s part of the self contained property and could not conceivably used for anything else. I suspect they likely used a template lease for a flat in a block (excluding the ground floor) when in this case part of the ground floor is clearly part of the property (one of the reasons I went for this property is that I had my own normal front door and it looks like a house externally).

For info this was a new build and a HA is the head landlord. I have no plans on selling up but the significant consideration is the technicalities of the leasehold if I do after staircasing (was a 99 year LH at purchase).

G_M

It's not clear what your quesion is, or what your concerns are.


Nor why your concern should be any greater now, staircasing to 100%, than whatever concern you did or did not have when buying 25%.


The lease has not changed. You bought that lease (well, 25% of it) quite happily back then, so what has changed?


Provided the lease and lease plan accurately reflect the reality of what you own (which doubtless you checked when buying 25%), then buying the remaining 75% is not n issue.


Of course, if you are now saying that the lease does not reflect relaity, well, you already have a problem which should have been addressed when you originally bought in to the SO property!

Altior

G_M wrote: »

It's not clear what your quesion is, or what your concerns are.


Nor why your concern should be any greater now, staircasing to 100%, than whatever concern you did or did not have when buying 25%.


The lease has not changed. You bought that lease (well, 25% of it) quite happily back then, so what has changed?


Provided the lease and lease plan accurately reflect the reality of what you own (which doubtless you checked when buying 25%), then buying the remaining 75% is not n issue.


Of course, if you are now saying that the lease does not reflect relaity, well, you already have a problem which should have been addressed when you originally bought in to the SO property!

My 25% purchase consideration was over a decade ago, my first ever property purchase and I assume my thinking at the time was that the ‘ground floor’ related to the car port and underpass (which is clearly not mine).

Now I’m re-reading the lease with a view to buying outright, having a decade more life experience and now I’m wondering whether this is a typical way to write a lease for a not so typical property. That is my query, to property experts that might be participating in this forum, before I incur potential expenses. It’s not how I interpret the lease, but how a potential buyer’s conveyancer would. It’s beyond doubt that there’s part of the property that is on the ground floor, but the ground floor is excluded on the lease (essentially!)

The only real value to me in staircasing is if I sell the property on. This is why I’m only investigating this now. I’d be quite happy to carry on paying the token rent until the end of my days without staircasing to 100%.

FWIW I would consider myself very financially literate, but property is outside of my expertise (evidently!). With 100+ pages of property legalise I did largely defer to my solicitor at the time (who I recall had to be selected from a bank of S/O specialists provided by the HA).

loubel

Does the lease refer to the entrance or garden at all? Either in the demise itself (often detailed in a schedule) or in the rights?

Altior

loubel wrote: »

Does the lease refer to the entrance or garden at all? Either in the demise itself (often detailed in a schedule) or in the rights?

Not that I can see. It reads ‘The Premises comprise the flat situated on the first floor of the building and known as plot number ** postal address *** *** *** edged red on the first floor plan of the Head Lease.

The Premises do not include:

• Those parts of the Building or of the Estate defined in the Head Lease which are excluded from the definition of the Premises in First Schedule to the Head Lease
• The parking space allocated to the Premises, in respect of which rights are Granted in Schedule 3 of this Lease
• The ground floor

loubel

Ok so it sounds like you have parking rights rather than owning a space. That's not uncommon. But it looks like there has been an oversight in drafting the lease that doesn't take into account its private entrance. Unfortunately this wasn't picked up when you bought so it will have to be resolved by amending your lease to include these areas. This would be at your cost but if the issue doesn't bother you then you can wait to do it when you sell/staircase/extend the lease.

Altior

loubel wrote: »

Ok so it sounds like you have parking rights rather than owning a space. That's not uncommon. But it looks like there has been an oversight in drafting the lease that doesn't take into account its private entrance. Unfortunately this wasn't picked up when you bought so it will have to be resolved by amending your lease to include these areas. This would be at your cost but if the issue doesn't bother you then you can wait to do it when you sell/staircase/extend the lease.

Thanks loubel. It’s not pressing at all, I’ve had no contact with the HA in the decade I’ve been here.

The parking is an interesting one as I don’t use my space, I live on a mews and just park outside the front door. The space is in the private forecourt, surrounded by fencing from neighbours gardens on three sides and would be of no use to the existing LL! The surrounding houses were privately sold and nothing to do with the HA. I suppose it would affect the valuation if the parking rights are not officially transferable.

Funnily enough the bricks on the steps to the front door have started to break apart due to frost, and need repairing. Since it transpires this is not my responsibility technically I may try and get the HA to carry out the necessary repairs! They may wish to have the lease corrected then

I don’t suppose you would have a ball park on what an amendment to the lease to include the ground floor parts of the property would cost?

Norman_Castle

Altior wrote: »

Not that I can see. It reads ‘The Premises comprise the flat situated on the first floor of the building and known as plot number ** postal address *** *** *** edged red on the first floor plan of the Head Lease.

The Premises do not include:

• Those parts of the Building or of the Estate defined in the Head Lease which are excluded from the definition of the Premises in First Schedule to the Head Lease
• The parking space allocated to the Premises, in respect of which rights are Granted in Schedule 3 of this Lease
• The ground floor

The head lease plan is likely to show the ground floor areas you are concerned about. Explain your interest in buying outright and ask to see a copy of the plan.
This might be available through Land Registry.

PasturesNew

You might be able to book a one off solicitor session, for £60-100 or so, where you outline your question and send them the paperwork and photos and ask them to confirm it's all OK and correct.

You could then use them as your solicitor for staircasing.

From your simple explanation of the question, with the full paperwork/lease and photos so they can visualise it all they will be able to ascertain if there is a problem or not before you go into the full conveyancing process.

You don't go to them, just provide paperwork and await a letter in reply.

I had a question about covenants and indemnity insurances, my one off question cost £60.

Just make sure your question is concise, not waffly - and provide them with sufficient photos that anybody can see what is where.