Freehold Delay

pier09

I’m part way through buying a house and the freeholder’s agent has just dropped an email saying the freeholder is selling all their leaseholds and it’s going to auction in 2 weeks. Everything was going so smoothly as well and I was optimistic about making the 31st Stamp Duty deadline.

Do I have any options or have I got to sit and wait?

Could I get an indemnity policy for the new buyer as there should be no issues at all. I’ve not done anything to the house (extend etc) since I bought it.

Any advice welcome. Thanks.

davidmcn

Indemnity against what? 

pier09

Any issues with the freeholder. Can I complete with an indemnity policy in place and the freehold approval follows?

eddddy

Why do you think you need to wait? Has your solicitor suggested that you need to wait?

I guess there's a slightly increased risk for you in buying - because you don't know who the new freeholder will be, and what they will be like.  But waiting a few weeks probably won't help you much with that.

And the freehold might be sold at any time anyway.

Are you interested in buying the freehold of the house yourself? If so you could arrange with the seller to start the statutory process.

pier09

Sorry I’ve not written it clearly.
I’m buying a freehold property and I’m selling a leasehold one. I was thinking about what options I have to keep the process going.

eddddy

pier09 said:

Sorry I’ve not written it clearly.
I’m buying a freehold property and I’m selling a leasehold one. I was thinking about what options I have to keep the process going.

OK - so as I say, why to you think you need to wait?

Has the situation made your buyer nervous?

pier09

They’re likely not aware of it. I only found out earlier today. 

I’m guessing their solicitor will advise them not to complete with this issue, although I could be wrong.

I am just unsure of the “rules” of conveyancing and whether it is legal to complete on a house without the freeholders permission.

eddddy

Does your lease say you need a "licence to assign" or similar? i.e. Do you need the the freeholder's consent to sell the lease?

If you do (which isn't a certainty), you can get consent from the current freeholder - you don't have to wait for the sale of the freehold to complete.

pier09

Thanks for the advice. Appreciated.

princeofpounds

So you're actually SELLING a leasehold property - the stuff about you buying isn't very relevant except that you are in a rush because of stamp duty, like everyone else.

If the freeholder issues their pack prior to selling, then it's no problem. Ask the agent if it can be expedited because of that (they are probably the ones completing it anyway).

If they don't, it depends who buys the freehold - they may keep the existing agent on for a period anyway, so it may slow things down. But the agent may want to wait until they have had confirmation from the new buyer to continue working (or not, as the case may be).

As eddddy says, if there aren't license to assign issues, then technically your buyer doesn't need the freehold pack at all. But many people will not want to buy without answers to some important queries, such as whether major works are being contemplated.