First time buyer and landlord - Flat bought on auction with hidden service and ground rent arrears

ashthemash

Here are the key bits of the SCs

london21

ashthemash said:

Here are the key bits of the SCs

I had a similar situation last year.

Bought at auction but the seller was not yet registered on land registry.

Getting a mortgage was impossible, had to complete cash and then get a mortgage once it was in my name.

Are you buying cash or managed to get a mortgage approved for back-to-back sub sale?

ashthemash

london21 said:

ashthemash said:

Here are the key bits of the SCs

I had a similar situation last year.

Bought at auction but the seller was not yet registered on land registry.

Getting a mortgage was impossible, had to complete cash and then get a mortgage once it was in my name.

Are you buying cash or managed to get a mortgage approved for back-to-back sub sale?

I bought it for cash. Did you have to deal with any arrears and how did you resolve the issues?

london21

ashthemash said:

london21 said:

ashthemash said:

Here are the key bits of the SCs

I had a similar situation last year.

Bought at auction but the seller was not yet registered on land registry.

Getting a mortgage was impossible, had to complete cash and then get a mortgage once it was in my name.

Are you buying cash or managed to get a mortgage approved for back-to-back sub sale?

I bought it for cash. Did you have to deal with any arrears and how did you resolve the issues?

Was a freehold.

There weren't any arrears.

Likely need to get your solicitor to check if you or the previous owner is liable for the arrears.

NameUnavailable

It would appear that the seller should be responsible for the arrears - what does your solicitor say?

eddddy

NameUnavailable said:

It would appear that the seller should be responsible for the arrears - what does your solicitor say?

It's fairly clear that the seller is responsible for the arrears - but that's not the issue.

The issue is that the seller hasn't paid the arrears.

As a result, the OP could have their lease forfeited - i.e. the OP loses their flat.

And the forfeiture might happen without the OP even knowing about it, as the Freeholder isn't recognising the OP as the leaseholder. So the Freeholder isn't communicating with the OP.


(To save going everything again, it's probably worth reading the thread.)

ashthemash

NameUnavailable said:

It would appear that the seller should be responsible for the arrears - what does your solicitor say?

I am waiting to hear back from my solicitor. He has gone a little quiet on me.

ashthemash

eddddy said:

NameUnavailable said:

It would appear that the seller should be responsible for the arrears - what does your solicitor say?

It's fairly clear that the seller is responsible for the arrears - but that's not the issue.

The issue is that the seller hasn't paid the arrears.

As a result, the OP could have their lease forfeited - i.e. the OP loses their flat.

And the forfeiture might happen without the OP even knowing about it, as the Freeholder isn't recognising the OP as the leaseholder. So the Freeholder isn't communicating with the OP.


(To save going everything again, it's probably worth reading the thread.)

There is an update. I have now received the rent and service charge arrears details from the property management and it totals over £6k. I have also been sent invoices for £3.5 k from the landlord for 'abortive' lease extension costs from 2021 and 2022. So roughly about £10k.

eddddy

ashthemash said:

There is an update. I have now received the rent and service charge arrears details from the property management and it totals over £6k. I have also been sent invoices for £3.5 k from the landlord for 'abortive' lease extension costs from 2021 and 2022. So roughly about £10k.

I don't think that abortive lease extension costs are classed as "Service Charges" or "Administration Charges" - so I don't think the freeholder can forfeit the lease for those. (i.e. You can leave the seller to pay those.)  But check that with LEASE or a solicitor.

So just to be clear - were all the £6k worth of bills sent to the seller before completion?

If so, as discussed, you are probably not liable for the bills - the seller is probably liable for the bills.

But the anomaly is, if the seller doesn't pay them, your lease might be forfeited.



To be honest, I don't know if the seller having unpaid service charge arrears puts them in breach of contract with you. So I don't know if you pay the bills, whether you can then sue the seller for your losses.  Again, you probably need to ask a solicitor. (Unless anyone else here knows.)


As I said previously, if you just pay the £6k on behalf of the original owner - the problems should go away (but you'll be £6k out of pocket).

And you need to check about the other £3.5k.

doodling

Hi,

Given that the OP is not currently being recognised as the leaseholder and is therefore in a very weak negotiating position I suspect that he will end up paying all the monies which the freeholder believes are outstanding in order to regularise the situation.  Obviously legal advice is recommended but I suspect the freeholder holds all the cards here.

It may be worth considering if the abortive 2022 lease extension work can be re-used by the OP to rminimise the cost of a lease extension.