Incorrect information supplied by Management Company on LPE1 form

Muriel18

I bought a property wirh a share of freehold, 7years ago, based on information supplied on the LPE1 form completed by the Property Management Company, acting for the Freeholder and supplied this form to my conveyancing solicitor, where it was stated there were no property disputes.

However, the boiler was moved in the property 4 years before I purchased the flat.  To a shared Freehold attic space. which is only accessible from within my flat, by the previous owner, who also happened to be the director of the shared freehold company director, for the 8 flats within my block.

The Management company are now asking me to pay to relocate this boiler within the demise of my property, now 11 years after it was moved by the original owner Originally the Management company were claiming that I moved the boiler, to this shared freehold space without their permission.  But I have the paperwork that shows the boiler was installed there 4 years before I purchased the flat. They are now claiming that my solicitor did not due diligence and therefore I must pay for this relocation of the boiler or purchase this very small shared  freehold attic space, only accessible from my flat for 40K.

I have checked the LPE1 form that was supplied by the Management company, (and has their stamp on it) prior to purchase and the is no mention of the boiler move or any dispute between the previous owner and the Management company or other Freeholders.

I am now in the process of selling this property and the Management company are now raising this issue , 11years after this boiler was moved 
I have found a buyer and I am worried that this issue may lose me the sale and cost me financially.  I also feel like I am now being blackmailed by the Management company , to either pay to relocate the boiler or purchase this small attic for the outrageous sum of 40k requested.

This situation is clearly not my fault or the fault of my conveyancing solicitor at the time of purchase. But due to misinformation supplied on the LPE1. 
What legal redness do I have, if this sale is lost because of the Management company action?

Can I now refuse to pay to move this boiler or refuse to purchase the shared freehold attic, prior to the sale. As, this was the Management Company error at the time of purchase. I feel that they should pay to relocate this boiler if they wish l
 

user1977

Muriel18 said:

This situation is clearly not my fault or the fault of my conveyancing solicitor at the time of purchase.

 

I wouldn't be so sure about that. Did you think the attic was within your demise? What did your solicitor tell you about it? Your boiler shouldn't have been there, irrespective of whether there was any dispute between the freeholders and the leaseholder about it.

eddddy

Based on what you say, you might have a case as follows:

• The freeholder was aware that the lease had been breached by putting a boiler in the attic - because a director of the freeholder company put it there.

• So even though the freeholder knew about the breach, the freeholder (or their management company)...
• a) ...didn't mention the breach in the LPE1
• b) ...continued to demand ground rent and service charges, knowing there was a breach

• The above might mean that the freeholder cannot take enforcement action in relation to the breach

i.e. Having the boiler in the attic is a breach of the lease, but the freeholder/management company cannot take any enforcement action against you (or your buyer). So the boiler stays in the attic.

BUT... if the freeholder/management company refuse to back down, it would need a tribunal/court case to make a decision on this. (Probably with an expensive specialist solicitor to argue your case.)


I doubt that your buyer wants to buy a flat with a prospect of a potentially expensive court case. (And I suspect that a mortgage lender wouldn't be happy either.)

So probably the easiest thing to do is pay to have the boiler moved. 




Edit to add...

Maybe you could make a 'small positive' out of this situation by saying to your buyer, "If you're interested in buying the attic, the freeholders say it is available for £40k. You could use it for storage, or perhaps convert it to extra living space at some point, subject to getting the relevant consents."