Leasehold problem on Townhouse Selling

MaiTai

Depend on when you purchased your current town house.

The realisation that these types of lease were likely to be problematic raised its head in early 2017 and initially came to light due to developers indicating that the freeholds could be purchased for relatively modest sums (a few thousand pounds)after the 2 year qualifying period.Rumours of developers failing to abide by this and charging vastly inflated sums of up to £75000.

As a result the lending institutions became extremely wary of these type of leasehold titles resulting in Nationwide pulling the plug unless the ground rent terms were deemed reasonable during the entire term of the lease.Other lenders followed suit.

Further complicated by the formation of an AST once the ground rent exceeds £250 pa (£1000 in London)

marcopolo22

Thanks for the replies everyone - just to answer you question MaiTai we have only be in the property since late 2019 so less than 2 years so I think that these problems would have been known then if you are saying it all came to light in 2017, maybe we have a case against our solicitor, but don't really hold out much hope TBH.

Slithery

marcopolo22 said:

WorriedKirkels - thanks yes we are asking our solicitors now, why they didn't spot this or enquire about it, but they are not responding to calls or emails

How long ago did you purchase the property? If it wasn't very recently then you won't have a case against your previous solicitor.
Remember that your solicitor not only works for you but also your lender and follows their instructions. This whole issue has only become a problem because of recent court cases, a few years ago mortgage companies were happy to lend on such properties - they have only recently taken a different stance.
Their money their rules, they can change the lending criteria whenever they wish. If you can find a cash buyer willing to purchase then it isn't a problem.