Ongoing freeholder title issue with no time limit.

RachelF10

I am selling my property and have so far lost a sale and an offer because my current freeholder didn't obtain and submit a transfer agreement when they purchased the group of properties. Resulting in myself not being able to obtain a quote for a lease extension (despite contacting both the current and old freeholder numerous times). Both my current and previous solicitor (as they missed the fact that the freeholders were different when I purchased the property), have also been chasing since December and always get the same response; 'our legal team are looking into the matter'. I spoke to a leaseholder advisor and she said there's nothing I can do, as long as they're on the case. It's been almost 9 months now though and has caused me a lot of stress and depression as this has stopped me from being able to sell my property and I have no idea when it will be resolved.
Both the freeholders are large companies - Barratt Guildford Ltd (old Freeholder) and Proxima GR Properties Ltd (current freeholder). 
If anyone has any idea of what else I can try or if I have any legal standing in any respect, I'd be really grateful. 
Thank you in advance,
Rachel

eddddy

RachelF10 said:

Resulting in myself not being able to obtain a quote for a lease extension (despite contacting both the current and old freeholder numerous times). 

It sounds like you're trying to negotiate an 'informal' lease extension.

Are you using a solicitor who is experienced in lease extensions? Have they suggested that you should go for a Statutory lease extension instead?  See: https://www.lease-advice.org/article/12-good-rules-on-extending-your-lease/

In simple terms, the law gives the leaseholder the statutory right to compulsorily extend the lease within specified timescales - and it puts the onus on the freeholder to 'sort out' any problems on their side. (The downside is that if there are problems to resolve, you might end up with higher legal fees.) 

RachelF10

Thank you firstly @eddddy for taking the time to respond to my problem. I read the article at the time you posted your response but felt there was a lot to take in and wanted to come back to it and re-read. I've re-read the article and more this morning and understand my options with regards to going through with a statutory lease extension. I'm hoping not to do this as the cost is very high, especially once you include all the solicitor and landlord/freeholder fees, on top of the cost of the lease extension itself.
I might however invest in getting a valuation from an external company, I did not know this was a thing. 
It doesn't solve my problem with the freeholder discrepancy and again it's unfair that there's no legal time frame, that freeholders have to sort any issues out. However a valuation is at least something I can do, to then give to the next potential buyer should they ask for it.
Thanks again,
Rachel

eddddy

RachelF10 said:

I've re-read the article and more this morning and understand my options with regards to going through with a statutory lease extension. I'm hoping not to do this as the cost is very high, especially once you include all the solicitor and landlord/freeholder fees, on top of the cost of the lease extension itself.

A statutory lease extension is likely to be more hassle, but it might still be cheaper overall - even taking fees into account.

Often a company will buy a freehold of an estate, as a kind of "job lot". The purpose is to make money from selling individual lease extensions to flat leaseholders, and individual freeholds to house leaseholders.  (A bit like a market trader buying a bulk job lot of TVs, and trying to make as much money as possible selling each TV individually.)

So the new freeholder will often be looking to squeeze the best price/terms they can get out of you - so you might have to negotiate hard.

RachelF10 said:

However a valuation is at least something I can do, to then give to the next potential buyer should they ask for it.

I guess there's no harm in that, but the freeholder probably won't take any notice of your valuation in an informal negotiation.

And the buyer can't start the statutory extension process for 2 years, so the valuation might be out of date by then (unless you offer to start the process before completion.)

NameUnavailable

If you have been living there for at least 2 years the general advice is to go the statutory route. That way you get a fair market price for the extension and also your ground rent will be peppercorn going forward (informal lease extensions are often on the basis of continuing or increasing ground rent and that can cause other issues will selling if the ground rent is too high).

I would expect a tribunal will also ensure that the freeholders pull their finger out to resolve whatever issue is holding things up.