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Didn’t inform ground rent leaseholder about my extension

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I own my own house without a mortgage but pay ground rent to a firm named Simarc who, I think, collect it on behalf of the freeholder.

After living here for 12 years they wrote to me asking if I had made any alterations to the property without asking their permission.  I had to admit that I had.A one-room extension has been added.  All planning and building permissions are correct, there are no loans involved and the property is properly insured.  The extension is wholly in my back garden and does not affect my neighbours In any way.

I apologised and, in an attempt to simplify matters, I asked if I could buy the freehold. They didn’t respond to this and so I sent a second letter asking how I could buy it.  I have now paid them £120 so that they can prepare a quotation.

They have now written to demand  £534 to “consider the possible granting of retrospective consent”.  This seems to be a lot of money for something that hasn’t really affected them or their investment. I am concerned by the wording which doesn’t promise anything and doesn’t even say that it will be the final payment.  

If I pay this, they will have had £654 from me and given very little in return.  

Do you think that my suggestion of buying the freehold was a viable way of getting around the problem?

Is there anything that I can do about this or must I just pay up and hope for the best? 


Comments

  • cattie
    cattie Posts: 8,841 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You broke the terms of your leasehold when having an extension built without freeholders consent. You built on land that didn't actually belong to you.  Why on earth did you not gain permission from freeholder before commencing work? If it were me I think I'd just pay the money to have everything legalised, especially if you're thinking of selling up in the future.

    Had  you sought permission originally, you would have been liable for freeholder's legal costs in granting permission & amending the lease anyway.

    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Personally, I wouldn't have even replied to them. If they want to find out if there is an extension, they can come over and find out.

    They can ask for charges that are 'reasonable' for reviewing the extension. There is no strict definition of this but you can challenge at a tribunal in theory. In reality, that's time-consuming and costly in itself, so it's only worth fighting up to a point.

    https://www.lease-advice.org/article/consent-to-alterations-improvements-in-a-leasehold-property-what-charges-can-be-justified/

    Yes, buying the freehold would get rid of the problem. If you qualify (and you probably do) then they have to sell it to you through a formal process at Tribunal, at a 'fair' value calculated according to a formula. Buying informally through negotiation is typically far easier, but be aware that they will usually ask for silly money until you tell them you are aware you can pursue it through tribunal. They then normally come back with a second, more reasonable offer.

    https://www.lease-advice.org/advice-guide/houses-qualification-valuation/

    How long is your lease? What is the value of your property approximately? What is your ground rent and how does it escalate?

    For me, I'd play for time on the permission issue and investigate buying the freehold.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    You own your property leasehold.
    You do not own the ground. You do not own the fabric of the building.
    You have a very long rental right to occupy the ground and the fabric of the building.

    So, yes, they do have every right to be consulted when you are planning on changing what your lease covers. And, yes, they have every right to be paid for their time in considering your consultation...

    If you do not like that state of affairs, you need to own a freehold property, not leasehold. But remember that freeholds can still come with covenants.
  • Tomrad said:

    I own my own house

    This part is incorrect which is why you are now in the position you find yourself in.
    You own a lease on the house (which is basically a long term rental agreement).You have altered the property - which actually belongs to the freeholders - without their permission.
    You are right to try and buy the freehold. It sounds like they are trying to get as much money from you beforehand although I wonder what prompted them to ask the question about alterations in the first place?
    I think in your position I would wait for a response on the freehold issue and let them know you are also looking into the formal route for right to purchase. However I suspect that there may be a clause somewhere to the effect that if any charges are outstanding (the retrospective permission) they may not be obliged to sell until those fees are paid.

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