Lost two sales absentee freeholder help

Stella_85

We bought our first floor leasehold flat (currently 115 years left on lease) in 2014 as FTB, the flat is in a converted house with one other flat underneath us also privately owned. 

Our freeholder sold us the flat, they did the conversation in 2004. Since our purchase we have had minimal communication from the freeholder, our ground rent has been collected once in 2017 and they have basically done nothing to upkeep the property although it is not in any major disrepair. 

In February 2020 we put the flat up for sale and received multiple offers, Covid hit in March and the buyer lost their nerve due to pandemic around June. Back to market and sold again in July, it became apparent during the solicitors process that our named freeholder had actually died in 2018 and no probate had been been applied for. 

The freeholders husband has continued to insure the building (we have paid all outstanding ground rent and BI owed now) but he apparently has no interest in applying for probate as our freehold is the only asset that needs applying for. According to the freeholders solicitor she has encouraged him to do this but he has no interest (he is quite elderly in his 80s). 

 

So our second buyers pulled out. We were advised by solicitors that our sale would be proceed-able with an indemnity for absent freeholder. 

EA happy to go back to market and all potential buyers informed of this arrangement when viewing/offering and price reduced by to reflect this, we accept an offer in December and eventually due to exchange today, all enquires resolved and happy buyer as of end of last week. 

We received a call from the agent yesterday afternoon informing us that the buyer will not proceed until probate has been applied for. We have gone back and offered additional money off as we are absolutely desperate. 

We are now unexpectedly pregnant with our third child and have to get out of our flat hence our desperation. It will not be feasible to stay in our current home due to lack of space. Our acting landlord knows all this and still doesn’t wish to apply for probate, he basically is totally disinterested.

I really need some advice on what we can do. 

Our agents said that if the buyers don’t proceed (looks unlikely) he will see if he can approach any investors etc as an option.  

We have also looked at renting our place out and renting somewhere ourselves whilst we try and resolve the freehold Issue with we think a compulsory purchase order via the courts? 

We have also considered auction as we are so desperate to be free of this place. 

We have about 100k equity in the property currently. 

I can’t get an appointment with the lease advisory service for another month. I think we will approach a solicitor next week for advice but we feel totally trapped. 

Thank you 

eddddy

Have you tried offering the freeholder's husband money? 


e.g. offer to buy the freehold from him for £5k (or £10k or whatever) as an incentive to get the probate sorted. 


Or maybe offer a bundled deal like... you'll pay all his solicitor's probate fees, solicitor's conveyancing fees etc plus £5k (or whatever), in exchange for the freehold.


So the freeholder's husband just has to sign the relevant forms his solicitor gives him, then he just sits back and waits for the £5k to arrive in his bank.

[Deleted User]

What does the other leaseholder have to say about the situation?

Stella_85

Poster_586329 said:

What does the other leaseholder have to say about the situation?

They don’t seem outwardly concerned at the moment but I think it’s a bit of ignorance is bliss atm. They told my partner that they want to sell later this year so I think once they realise the issue to it’s full extent they will be more amenable to band together with us. They are not that easy to communicate with in a stand offish sense. 

Stella_85

eddddy said:

Have you tried offering the freeholder's husband money? 


e.g. offer to buy the freehold from him for £5k (or £10k or whatever) as an incentive to get the probate sorted. 


Or maybe offer a bundled deal like... you'll pay all his solicitor's probate fees, solicitor's conveyancing fees etc plus £5k (or whatever), in exchange for the freehold.


So the freeholder's husband just has to sign the relevant forms his solicitor gives him, then he just sits back and waits for the £5k to arrive in his bank.

Thank you; I forgot to say the freeholder didn’t have a will, would it still be possible for the husband to get the probate of the freehold? 

I think this approach will be the
simplest way of dealing with this. Do you know how long probate usually takes?
online it seems to vary from a few months to years 😳

RAS

The freeholder needs to get letters of administration, basically probate without a will.