Freehold/leasehold management

Ducking55

I inherited the freehold of a property converted to 9 flats on land . The front of the property of 6 leasehold flats  is semi detached from the back half built on at a later date and separated when the conversion took place in the 80’s. The back half of the property, 3 flats are freehold and I reside in one. 

There has been a casual agreement with the 6 leaseholders at the front to manage their half and they have created a management company which is registered at companies house. The problem I have is I now wish to create leases and sell 2 of my freehold flats and run the management myself for the back 3. I have just had a sale fall through for my bottom Flst and I’m worried it is because of the set up here. It has been suggested I split the title but my 3 flsts have shared the car parking ever since my parents converted the property and only have freeholder rights unlike the front 6 leaseholders who have allocated parking spaces.
I have offered to split the title if the property and give the freehold at the front to the leaseholders in exchange for 3 parking spaces but if they refuse what can I do . If I split the title myself I still have the parking problem . I would have to give my leaseholders permission to park on the car park of what would be a separate title even though I own it . Until I sell something I have no funds for big solicitor bills . Can anyone advise . I have told prospective buyers of my flat that the 6 flats at the front manage themselves and I will manage the back 3 but don’t want to put buyers off . Not sure what to do!! On my own and nearly 70 and so stressed about this!! 

DullGreyGuy

If the back three are just freehold are they currently rented out? 

How many parking spaces are there for those? How have the current people living there dealt with the lack of allocated parking?

Just because the front six have allocated parking doesnt mean the rear three have to have any. Clearly it's managed to work so far without allocation so no reason why it won't work going forward. You may get more for the units if they do have designated spaces but there are plenty of flats that dont. 

Ducking55

It’s also the management side of things can so manage my 3 flats if I sell two leasehold and keep my flat freehold . Yes the flats were let out and so live in one. One is on the market and up to now as freeholder I gave my tenants permission to park there . Obviously as freeholder the leaseholders cannot stop me parking there but wanted to know what to do if I sell the flats 

loubel

Have you not appointed a solicitor to draft the new leases for you? They will be able to advise on whether these can include a parking space. Are there enough spaces for all of the flats to park or is it first come, first served?

If you aren't currently managing the front building, do you actually want to be responsible for the back one? Do you understand the responsibilities and obligations that will come with this?

Ducking55

I’ve been running the back for the last 10 years as the back flats  were left in trust to me and the freehold of the whole property. Now my father is gone I own outright . Been running as a business . As it’s only 3 flats and I reside in one I prefer to keep control . I do a lot of the maintenance myself . I would continue the maintenance of the building and grounds at the back . As it’s only 3 flats I don’t need to create a management company just provide accounts and receipts once a year . When I’ve sold both flats I would consider Sharing the freehold between the 3 of us if the title is split from the front 6 flats. 

But can I run the back separately from the front 6 flats as they have created a management company though they do not have right to manage . Obviously my freehold flats would not have to be included but what about the flat I’m selling leasehold . 

Ducking55

I didn’t mention that the car park is at the front of the property so if the title was split would be on the title for the 6 flats and we would all share general access and rights . What about splitting the title and putting g both titles in my name and retaining access of common ground. Would that include the car park ? In which case my leaseholders would have some legal right to park there ? Just trying to think of ways round this . 

loubel

These are really questions for your solicitor, who will be able to read the existing leases and work out whether you can treat it as two separate buildings for the purposes of the new leases

ExEstateAgent

This sounds complicated and in danger of becoming more so. 

Firstly, you need to make all 3 flats leasehold even if you are still living in one (to avoid issues later on). As you're the freeholder you should be able to decide what you want to do with regards to the car park, as long as it doesn't conflict with any of the terms of the other flats leases (i.e. if there are 6 flats and 6 spaces and each flat has been allocated a space you can't just take them away for yourself). 

As said, you really need your solicitors advice on the detail. 

If the other flats are arranging their own maintenance and you're happy with what they're doing then you can leave them to it, but it should really be formalised because a new leaseholder could hold you as freeholder responsible in the future. As it stands it sounds like you could be on shaky ground legally speaking in not fulfilling your duties as a freeholder (fire safety issues in particular).