Cant buy Freehold - Developer gone Bust - Ground Rent Demands

chezzzer

Hello

Can you help with advice for my property problem,

I keep getting demands for ground rent  

 

I have spent hundreds on solicitors’ fees in the attempt to buy my freehold,

I have been informed there has been an historical administration error on behalf of the Land Registry when dealing with registration.

The developer Milbury Estates ltd went into administration yet Zurich insurance continue to instruct a solicitor to collect ground rent.

They will not resolve the issue and therefore not sell the freehold title to me

How can I get this corrected and purchase the freehold to my own property?

Leasehold was 999 yrs in 1980 and ground rent is £50 per year 

Thank you for any help or advise you can give

Look forward to hearing from you soon

Cheryl

MattMattMattUK

chezzzer said:

Hello

Can you help with advice for my property problem,

I keep getting demands for ground rent  

 

I have spent hundreds on solicitors’ fees in the attempt to buy my freehold,

I have been informed there has been an historical administration error on behalf of the Land Registry when dealing with registration.

The developer Milbury Estates ltd went into administration yet Zurich insurance continue to instruct a solicitor to collect ground rent.

They will not resolve the issue and therefore not sell the freehold title to me

How can I get this corrected and purchase the freehold to my own property?

Leasehold was 999 yrs in 1980 and ground rent is £50 per year 

Thank you for any help or advise you can give

Look forward to hearing from you soon

Cheryl

First you need to pay the ground rent, you are legally required to. Who did the freehold pass two when the company was dissolved, guessing from the above it passed to Zurich, which is who you should be paying. 

chezzzer

Hi my last communication in 2019 from zurich solicitor said - Until it has been resolved they will not issue any further demands for the Ground Rent.
and now this week i have received a demand for ground rent for 2020 to 2024 £200.
I have no problem with paying the ground rent however i would like to purchase the freehold, 
my question really is how can I resolve historical errors with the land registery? 

user1977

You’re still being rather vague. Who is currently registered as the freeholder?

chezzzer

apologies for being vague?
i am the title register on the property i have a mortgage on it, the previous owner register the charges and agreed with the proprietor: milbury estates ltd the lease dated from 1980 to 999years. since i purchased in 2013 and currently the solicitor acts on behalf of zurich insurance to collect ground rent. however i feel i should be allowed to buy my freehold instead of giving money to an insurance company who no longer represents the developer? 

chezzzer

the freehold is stil in milbury estates ltd name - this is the historical admin error....

user1977

What was the error?

eddddy

chezzzer said:

I have spent hundreds on solicitors’ fees in the attempt to buy my freehold,

Have you been trying to buy your freehold 'informally' - for example, by trying to negotiate with Mibury Estates or Zurich? 

Or have you been following the 'Statutory process' - that's often called 'Statutory Enfranchisement'?


The ethos behind 'Statutory Enfranchisement' is that a leaseholder should always be able to buy their freehold, however messy the situation is.

For example, if nobody can work out who the rightful freeholder is, the court will still allow you to buy the freehold, and the court will hold onto the purchase money - until it's clear who the rightful freeholder is.

But the problem is - going through the courts etc might cost you thousands of pounds.

(But the freehold itself should cost you around £1000.)


From a different angle... Why do you want to buy the freehold? What benefits are you expecting from doing that?

chezzzer

yes I communicate through a solicitor, Zurichs solicitor will not deal with me direct, all communication is through my solicitor. However it gets costly because they close my file each year when they receive no communication from Zurich solicitor, they can’t keep chasing and I understand this. 

However now I am again having to instruct my solicitor to get my file from archive and ask for an update. 

I would like to not have to pay ground rent every year, and leave my property to my child and they not have to pay ground rent. 

I'd also like to extend and would this be effected? 

Both My neighbour don’t pay ground rent to anyone and bought theirs as freehold properties.
i think it would be costly to go to court. 

I’ve complained to land registry about their historical error being millbury estates still listed as owning the freehold but they cannot correct it because they have dissolved and cannot pass it on??

EssexHebridean

The Land Registry can only act on applications that are made to them - they can't act unilaterally without instruction. If nobody has made an application for a change of ownership of the freehold to be registered then there is no application to be acted on. 

eddddy

Unless you follow the 'Statutory Route' - which might (or might not) involve a court case - there is no way you can 'force' anyone to sell you the freehold.

You can ask the freeholder if they'll consider selling the freehold to you, but they are free to ignore you, or say "no", or ask for a silly price, etc. Even if the problem with Land Registry is resolved. 


I guess I'm not really sure why you feel that paying £50 a year in ground rent is a big problem. And maybe only for the next few years until this is all resolved.