Leasehold responsibility maintenance query and decision on offering to buy freehold

simonanha

I recently completed on a leasehold upper floor flat/maisonette in a converted Victorian house. There is one other flat in the building on the lower floor, currently occupied by tenants.

During the sale the freeholder raised a Section 5 notice, and I was initially interested in purchasing a share of the freehold. The lower floor leasehold is owned by a property management company and they have told me they aren't interested in buying a share, so I am considering offering to buy the whole freehold.

The issue is that since moving in I have seen the extent of the disrepair of the extension/outbuildings as part of the downstairs flat. E.g. there is a lean-to with a corrugated iron roof which has huge holes in it.

The freeholder is responsible for maintenance and the two flats cover the costs.

My query is twofold - 1) as a leasehold I want to know if I could be asked to cover the maintenance of the extension/outbuilding. Have pasted what I think is the relevant section from the lease below which I think suggests not.

2) is it worth taking on the responsibility of the whole of the property as a freeholder and any potential repairs? Seems like a bit of a minefield given the condition. Also given that the current freeholder may have not upheld responsibility for the whole property being in good repair? I have NO experience of being a freeholder, and this is my first purchase, for context...

Pasted from the lease:

"the first floor maisonette…together with the staircase leading thereto all sewers, drains, watercourses, water pipes, water tanks, cisterns, gutters, gas pipes and electricity and telecommunications, wires and cables (“service conduits”) within the building that exclusively serves the first floor maisonette but excluding any service conduits within the building that exclusively service the ground floor maisonette….together also with the staircase leading to the first floor maisonette from the ground floor which the demisted premises forms as part as the same are more particularly delineated and edged in red on Plan 2 attached….and it is hereby declared that one half of the depth of the joists between the floors of the Demised Premises and the ceilings of the Lower Maisonette the external walls above this level and the roof are included in the demise and that the wall of the front entrance and passages are party walls severed medially… at all times during the said term in common with the Lessor or other Lessee for the time being of the Lower Maisonette to pay and contribute a) one equal half part of the expense of repairing maintaining and rebuilding the roof foundations and main structure of the building”

Thanks so much for any advice.

eddddy

FWIW, here are a few thoughts...

Freeholder's responsibilities
From the lease snippet you've posted, It sounds like the freeholder has little or no responsibility for maintaining and repairing the building.

• It sounds like the upstairs leaseholder might be responsible for maintaining and repairing the top half of the building and...
• the downstairs leaseholder might be responsible for maintaining and repairing the bottom half of the building

Does that match with what your solicitor told you?

If so, does that mean there is no service charge - except maybe (or maybe not) for buildings insurance?

If so, buying the freehold won't mean you get any maintenance or repair responsibilities.



Liability to contribute to the cost of repairs
In simple terms, your liability to contribute to the cost of repairs won't change as a result of you buying the freehold.
For example...

• If as a leaseholder, you are responsible for contributing 50% of the cost of the iron roof, you will still be responsible for contributing 50% of the cost if you buy the freehold
• Or If as a leaseholder, you are responsible for contributing 0% of the cost of the iron roof, you will still be responsible for contributing 0% of the cost if you buy the freehold

Your ability to buy the freehold
If your freeholder has served a section 5 notice, it's likely that the freeholder has found a buyer and is offering you your legal right to first refusal.

In order to take up your section 5 right of first refusal, even if you want to own 100% of the freehold, the downstairs leaseholder will have to cooperate with you - e.g. sign legal forms. They might want to take legal advice, which they might expect you to pay for (as they are doing you a favour).

They get no clear benefit from helping you to buy the freehold, so they might decide they don't want the hassle.

Alternatively, you can approach the freeholder and ask them to sell the freehold to you, but they might refuse.