Disaster - Leasehold flat, but my allocated car parking not on deeds

smoothound54

Dear Folks,
I am selling my leasehold apartment (mine for 14 years) and have placed a deposit on a house.  It is a purpose built apartment block. The purchasers solicitors have found that the allocated car parking space is not on the apartment deeds, and so the lease is technically 'defective'. Neither my original conveyancer nor myself (I was only 18yrs old), spotted this when I purchased the flat.  I bought the flat assuming the car parking space was integral to the property. The landowners are about 4 shell companies above their UK agent - based in Bermuda, so I don't think they will help.

I am told it could cost around 25K to correct the lease defect and that it would mean removing the right to the parking space devaluing my flat substantially. The combination of this huge cost and the devaluation in property price will remove all the equity I have developed in 14 years.  It is devastating.

I have also been advised that it may be less costly to auction the apartment with a defective lease - but the outcome will be similar. - and go into rented accommodation and try to rebuild my life.

Is there any remedy?  Have I any recourse to the landowner?   Have I accrued any rights through my long standing 'daily' use of the car parking space? have I recourse against my original conveyancer for negligence? Is there a tribunal or ombudsman I can turn to?

Any help would be much appreciated.

smoothound54

The house deposit is just a new-house plot holding deposit so far - the equity would have made up the remainder.

davidmcn

smoothound54 said:

I am told it could cost around 25K to correct the lease defect and that it would mean removing the right to the parking space 

I'm confused - if the defect is simply the lack of the parking space, surely correcting it means that you would have the right to the parking space? If in practice you've had no difficulty using the parking space for 14 years, why bother fixing it at all? Can't the problem be insured against? Are the parking spaces actually worth £25k?

Grumpy_chap

Original solicitor should have spotted this, so you may have a claim?

£25k to correct the lease is absurd.  Where did this figure come from?

Does not seem right that the parking space (if not yours) is as much as the gain in 14 years.  Where did that figure come from?

smoothound54

Thanks David,

Apparently if the deeds have the space and the lease does not, it's an easy fix to include it.

But it is the deeds that dictate the 'curtilage' of the premises not the lease.  And so the lease is at fault for erroneously including the space when it is not in the deeds.   It is fixing the defect that can cost a substantial amount the figure 'up to' 25K was mentioned.  I am assuming a lesser value reduction for the loss of the space itself - but it will still be substantial.  I can't sell 'with allocated parking space' if it's not in the deeds.

And yes i am confused too. My selling solicitors are considering the matter and will advise further - it has been bumped up the heirarchy. The above is the prima-facie explanation as given to me on the phone tonight,

davidmcn

Ah, you mean the lease does include it but the freeholder has never had title to it? Is that the problem? I still suspect it can be insured against (in which case the safest thing to do is say nothing to the freeholders or anybody else who actually does have title to the space).

smoothound54

The freeholder owns the car park too - but it has no been allocated to the apartment in the deeds. I suspect all the apartments in the block might be the same.

Whether I insure against it being discovered by third parties - or having my access rights removed - is not really relevant now. The purchaser's solicitor has discovered it and has said the deal is off if a (quick and sure) remedy cannot be found. I suspect any future purchaser would find the same. - Catch 22. - thanks anyways

davidmcn

smoothound54 said:

Whether I insure against it being discovered by third parties - or having my access rights removed - is not really relevant now. The purchaser's solicitor has discovered it and has said the deal is off if a (quick and sure) remedy cannot be found. I suspect any future purchaser would find the same. - Catch 22. - thanks anyways

Providing your buyer with a title indemnity policy is a quick and sure remedy, that's the beauty of it. Haven't the solicitors explored it at all?

smoothound54

Thanks - David - they are still formulating their advice - which has left me in limbo - wish that had only told me when they were ready ro advise properly - I will ensure that option is covered by my solicitors  - many thanks again!

Grumpy_chap

OP has a flat on a lease, with deeds matching the lease.  Neither include the parking space.  That's how I read this.

That is not entirely uncommon.

Then there could be a second lease for the parking space.

Is that a possibility?

smoothound54

The Mr G - BNot quite correct,  the leasehold does not match the deeds.....

The lease erroneously mentions the car parking space - the deeds do not. The lease is therefore defective. The only fix for the lease is to remove the car-parking space from the lease to make them coherent.