Cant buy Freehold - Developer gone Bust - Ground Rent Demands

GDB2222

I’m confused about one thing. Surely, Zurich has to prove it is entitled to the ground rent, if challenged? Otherwise, anyone could write to the OP and demand money. 

If they own the freehold is there no penalty for having failed to register ownership at the LR?

By the way, there is no company called Milbury Estates on the register at Companies House. Companies that have been dissolved are still shown on the register for years afterwards. So, were they dissolved many years ago, or is the exact name something different?

chezzzer

EssexHebridean said:

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. 

thank you 

chezzzer

my Solicitor has said....

They inform me that their client had been collecting Ground Rent as mortgagee in possession.

 Their client has a Charge over the Freehold Title to the property which specifically refers to ...and I am also informed that they hold the counterpart Lease for the property.

 They believe that there has an historical administration error on behalf of the Land Registry when dealing with registration of their client’s Charge and they are seeking to resolve this as soon as possible.

 Until it has been resolved they will not issue any further demands for the Ground Rent.

GDB2222

I am not sure whether a mortgagee in possession has to register their interest at the LR? Anyway, it sounds like they have a genuine right to payment of the ground rent. You could download the freehold title from the LR (not your leasehold) and it should show. Zurich as having a charge. 

You don’t need a solicitor to pay your ground rent. Just send £50 to Zurich's solicitor and ask them to pass it on. They can’t refuse to deal with you and, at the same time, refuse to give you payment details so you can pay the £50 direct to Zurich. 

This is only getting expensive in legal fees because you want to buy the freehold from someone who doesn’t want to sell.

chezzzer

I have paid to see the titles it says Registered FREEHOLD owners

MILBURY ESTATES LIMITED
Registered LEASEHOLD owners Myself

GDB2222

There should be two titles. It's worth looking at the other one.

From your leasehold title, do you know when the leasehold started? 

EssexHebridean

OP says they have paid to see the titles plural, and their comment does suggest that they have both the FH & the LH one. 

user1977

chezzzer said:

I have paid to see the titles it says Registered FREEHOLD owners

MILBURY ESTATES LIMITED

How long ago did they acquire the property? Do you have a company number for them?

chezzzer

Milbury Estates Ltd are the orginally developer in 1980 - home was registered on Dec 1981 and first home owner Mr T was registered May 1982. then i have bought from Mr T on Dec 2013 registered on leasehold title Jan 2014. been trying to buy the freehold and i last checked the title Sept 2023 which still lists Milbury as the freehold.  Zurich Insurance Company the mortgagor of Millbury Homes North Limited collect ground rent for my property.  

chezzzer

L R reply - 

 The freehold title is correct as whilst the registered owner may have been dissolved that does not mean that the legal ownership automatically changes. The law re dissolved companies is a complex one, but it's really legal advice you need to understand the impact of the dissolved company on the freehold, your leasehold and who you pay your ground rent to