Leasehold bought by new company - needing information about insurance/alterations?

serendipity109

Living in a property owned outright by me, has been in the family since the 1950's.
Leasehold is a peppercorn of £3.25, had a letter from the new owners of the portfolio who demand to know lots of questions like how much I pay and who it's insured with, how much I pay, when it's due etc etc. Do I have to provide all of this, plus they want to know all the alterations done in the past to date, there was an extension done in the 70's?
I am really concerned that they may increase to a ridiculous amount and where I stand, it's quite a threatening letter I can do without!

AdrianC

The rent cannot be increased except as allowed by the lease, unless you sign a new one. How long is left on the lease?

Does the lease include a requirement for you to have buildings insurance? If so, then asking about your insurance is fair - how else do they know you're following that requirement?

Does the lease include a requirement for permission for alterations? If so, then asking about any alterations before now is fair - how else do they know what alterations you may make in the future?

serendipity109

Thank you for your response, I need to dig out the lease agreement but have no idea what it looks like!

Wanderingpomm

I would only tell them the basics, they should know how much you pay already. 

I certainly would not be telling them about alterations at this point 

princeofpounds

You only need to tell them what you are obligated to by your lease and by statute (law).

The obligation may not be direct i.e. it may not say 'you have to tell them about your insurance', but it may say 'you are obliged to keep the property insured' and you effectively have to communicate with them to evidence that you are upholding your duties.

For the lease - read the lease.

For statute - go to lease-advice.org, a government-funded advice service, which has loads of helpful guides about how to understand leaseholds.

It sounds like this may be a fishing expedition to justify charging some fees, so you should only tell them what you really have to. For example, asking about extensions may well be related to clauses requiring freeholder approval (which can be charged for, although tribunals have started restricting the amount that can be claimed). I'd be tempted to ignore that topic - let them come and find out there is an extension if they like (they won't). 

Similarly with the insurance, I wouldn't necessarily answer every question. If the lease says 'you must have the building insured', then you can say 'I can confirm that the building is insured as required under the terms of my lease, currently with X'. If they ask for proof, you can send your policy certificate, you probably don't need to discuss renewal dates, premiums etc.

If your property is suitable (basically, a house) then you might want to look into enfranchisement - buying out the freehold. If you have a really long lease and minimal ground rent, it may not cost that much.

serendipity109

I have found the leasehold, it does note state they are allowed to increase, just the sum of three pounds 5 shillings for 1000 years from 1933.
It states to keep the buildings insured against fire loss and damage by Alliance Insurance or other well established insurers, and also not to make structural alterations to existing buildings, which goes without saying.
I agree totally with this as they have just bought a portfolio and will be looking to make money...
It sounds like this may be a fishing expedition to justify charging some fees, so you should only tell them what you really have to. For example, asking about extensions may well be related to clauses requiring freeholder approval (which can be charged for, although tribunals have started restricting the amount that can be claimed). I'd be tempted to ignore that topic - let them come and find out there is an extension if they like (they won't)
Interesting that next door also pay this and it's just been sold, they are moving in next week I wonder what their solicitor found.
The rent should have been paid 24 June, I had no letter so contacted the previous landlord who said they'd sold it on but they failed to update my address details, so I wonder if they will try to say I have paid late, however I did not received their letter.

princeofpounds

The link below gives some description of what constitutes a valid demand for ground rent, in case it's useful.

https://www.mayowynnebaxter.co.uk/resources/2019/11/ground-rent/

serendipity109

I just had a thought...
 let them come and find out there is an extension if they like (they won't)
They could check on Google Earth!

AdrianC

serendipity109 said:

I have found the leasehold, it does note state they are allowed to increase, just the sum of three pounds 5 shillings for 1000 years from 1933.

That wasn't exactly peppercorn back then... If it had increased with inflation, it'd be about £235 now.

It states to keep the buildings insured against fire loss and damage by Alliance Insurance or other well established insurers

And that's why they're asking about your insurance.

and also not to make structural alterations to existing buildings, which goes without saying.

So was there leaseholder approval to the 70s extension...?

The rent should have been paid 24 June, I had no letter so contacted the previous landlord who said they'd sold it on but they failed to update my address details, so I wonder if they will try to say I have paid late, however I did not received their letter.

Just pay it now... It's only a month, and they've only just got round to asking.

serendipity109

That wasn't exactly peppercorn back then... If it had increased with inflation, it'd be about £235 now. 

Apologies if I got the 'peppercorn' term wrong my misunderstanding

And that's why they're asking about your insurance. 

I have never been asked for this before, do they really want to check everyone's insurance each and every year?!

So was there leaseholder approval to the 70s extension...? 

I was about 13 years old so I have no idea, I do know they had the planning permission

Just pay it now... It's only a month, and they've only just got round to asking.

I'd be happy to but 1. I do not know how/who to pay to and 2. They haven't got round to asking me for it yet, they have just sent me a Notice of Assignment of Landlords Intent pack.

serendipity109

So....if they were to find out it had been extended 50 years ago, can they up the ground rent?