Tyneside lease freehold problem

ConfusedLaura

Hi 

I’d really appreciate some help, I’m completely at a loss.

I’m selling my flat, which has now been blocked by the buyers solicitor, because of an issue with the lease. It’s a Tyneside lease, so I own the leasehold of my flat and the freehold of the flat downstairs, and it should be vice versa for the flat owners downstairs. However, when the flat was purchased downstairs (25 years before I purchased my flat) the freehold to my flat was never transferred correctly over to the new owners, so the old owner still owns the freehold to my flat.

My solicitor is now preparing to contact the old owner and ask them to sign over the freehold correctly, which should have been done 30 years ago. I’m so annoyed as my flat has exchanged owners several times since the downstairs flat was sold and we’re the unfortunate ones that has had this problem discovered.

What I’m worried about is that the old owner is going to turn around and refuse to sign it over unless we buy it off them. Is this a possible outcome? How much can we be expected to pay?

The lease has 999 years left and the flat is only worth £70k, so I’m hoping if we have no option but to pay, it won’t be very expensive.

Any insight you can give will be really appreciated

eddddy

I guess the old owner will expect you to pay their legal fees. The freehold will have no value to them - so hopefully they'll sign it over without a fuss.

But if they 'can't be bothered', or wan't to be 'awkward' or sees it as an opportunity to make a few pounds - it could be difficult.

How long have you owned the flat? Maybe you should contact the solicitors you used for the purchase, and ask them why they missed the problem. Were they local solicitors, who would be familiar with Tyneside Leases? Or perhaps budget online solicitors who might not come across Tyneside leases very often?

ConfusedLaura

I really don’t mind if it’s just legal fees, just hope they don’t see this as an opportunity. 

I’ve owned the flat for 5 years and I used a local solicitor, so they should have been familiar with Tyneside leases. 

macman

Do you not have a case for suing the original conveyancer from 5 years ago (or at least asking them to pay all your additional costs) for their negligence in failing to check that you had good title via the freehold ownership being in the right hands?

ConfusedLaura

macman said:

Do you not have a case for suing the original conveyancer from 5 years ago (or at least asking them to pay all your additional costs) for their negligence in failing to check that you had good title via the freehold ownership being in the right hands?

I was thinking about it, but I’ve been told that the firm I used has been closed now due to the solicitor retiring and I have no idea how to go about it. 

macman

If his business was taken over by another firm upon his retirement then they should be liable. Solicitors don't usually just 'close down'. if they have goodwill in the practice, it is sold on.
If so, you just send an LBA to the managing partner.

davidmcn

macman said:

If his business was taken over by another firm upon his retirement then they should be liable. Solicitors don't usually just 'close down'. if they have goodwill in the practice, it is sold on.
If so, you just send an LBA to the managing partner.

Yes, retiring solicitors maintain insurance for a while to cover any such claims, they can't avoid them just by saying they're no longer in business.