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HIP with totally wrong information! Shared Freehold
Richard_Webster
Posts: 7,646 Forumite
I knew it would happen! A HIP Provider (Hipstar) has produced a HIP which is obviously wrong..
I have a client buying a "shared freehold" flat.
(For those who don't know, shared freehold means that the freehold itself is owned either literally by the (up to 4) individuals who own the various flats or is owned indirectly through a company in turn owned by the flat owners. The crucial point is that each flat will also normally have a lease. It is the lease that is purchased and the "share" in freehold either literally or through a company gets transferred as an incidental to the transaction.)
So the sale statement says that the seller is selling the freehold of the whole building (which he only partly owns and therefore cannot offer for sale as a whole) and no copy lease has been provided. In this case I can see what has happened and I am not confused, but a lay person would be! The approach here should be to show the leasehold title and say the seller is just selling the individual leasehold flat and add to the authorised documents a copy of the freehold title to show the seller partly owns it.
Of course it won't happen a lot because most buyers don't look at the HIP, but if they do it will just cause confusion and the buyer will feel "conned" when actually it is a silly mistake on the HIP provider's part.
The moral for sellers is to get a conveyancing solicitor who understands the true position to prepare the HIP!
I have a client buying a "shared freehold" flat.
(For those who don't know, shared freehold means that the freehold itself is owned either literally by the (up to 4) individuals who own the various flats or is owned indirectly through a company in turn owned by the flat owners. The crucial point is that each flat will also normally have a lease. It is the lease that is purchased and the "share" in freehold either literally or through a company gets transferred as an incidental to the transaction.)
So the sale statement says that the seller is selling the freehold of the whole building (which he only partly owns and therefore cannot offer for sale as a whole) and no copy lease has been provided. In this case I can see what has happened and I am not confused, but a lay person would be! The approach here should be to show the leasehold title and say the seller is just selling the individual leasehold flat and add to the authorised documents a copy of the freehold title to show the seller partly owns it.
Of course it won't happen a lot because most buyers don't look at the HIP, but if they do it will just cause confusion and the buyer will feel "conned" when actually it is a silly mistake on the HIP provider's part.
The moral for sellers is to get a conveyancing solicitor who understands the true position to prepare the HIP!
RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
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Comments
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Hipstar is a really crass name!
You can totally imagine a not very well trained individual at the company ordering pieces and putting together a HIP and not even understanding what they're putting in it and just thinking Share of Freehold is the same as Freehold.Everything that is supposed to be in heaven is already here on earth.
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Interesting ...... to what extent is a HIP "binding"?
I guess they have a caveat to say that they are not to be relied upon and that the buyer should take legal advice.
They're crap - a complete waste of time and money. I wouldn't even bother to ask for a HIP if I were buying.
Usual political "aren't we great? Look at how we've made things easier for voters, when they buy property!"
Complete, utter rubbishWarning ..... I'm a peri-menopausal axe-wielding maniac
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I've just been asked for mine. I wonder why they're even bothering. The searches are out of date.Everything that is supposed to be in heaven is already here on earth.
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My house is going on the market soon (sob, sob) ..... we saw four EAs and each one said they'd never been asked for a HIP. I have to say I wasn't surprised.
Would love to know why you've been asked for it Just curious and you might never know, but I do wonder what potential buyers think they're going to get from the HIP. Warning ..... I'm a peri-menopausal axe-wielding maniac0 -
Bet the buyer doesn't notice.Doozergirl wrote: »I've just been asked for mine. I wonder why they're even bothering. The searches are out of date. A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0
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