Lease renual issues

SylviaB · 16 April 2019 at 11:02AM

Hi,

My husband and I currently live in a block of flats (7) where we are all the leaseholders. The lease is being renewed as the original lease states that flats can not be sublet and the new proposed lease will allow subletting.
Currently, there is at least two of the flats being let out.
The decision to renew the lease was made over a year ago, with everyone in agreement. It is with the solicitors but there are a select few who have not returned their paperwork thus halting the process.
One of the said people is also one of the leaseholders who is subletting.
Basically, I would like to know where we stand and if there is any action we can take as we are in the process of selling and this has already caused us to lose one sale.

Any advice greatly appreciated.

Many Thanks

G_M · 16 April 2019 at 11:09AM

Who is the freeholder and has he agreed to the granting of new leases?

Neither the freeholder, nor any of the leaeholders, can force another leaseholder to sign a new lease if they either don't want to or can't be bothered. They have a valid lease and don't have to change it.

Of course, if a leaseholder is breaching their current lease, eg by sub-letting when their lease prohibits this, then the freeholder could enforce the current lease terms and force the leasholder to evict their tenant and stop sub-letting. That might incentivise them to sign a new lease.............

SylviaB · 16 April 2019 at 11:40AM

its a little bit complicated. all the flat owners are the lease holders, its run as a company where every flat owner is a shareholder.
the lease was up for renewal as it is now under 90years. everyone has agreed to the changes, obviously is going to benefit the owners who are subletting. but we have lost a sale because of this already. now we are getting to the point where we feel like we need to take legal action against the ones in breach of the current lease to just make them sign it! if this is a possibility at all? or if anyone can give any advice at all??

pinkteapot · 16 April 2019 at 11:42AM

Have you been round and had a chat with them?

It could be that they have an issue with the new lease. It could be that they just don't both reading complex official documents properly and don't realise they need to sign something.

SylviaB · 16 April 2019 at 11:55AM

yes have spoken to them and every time all we get is the sort of 'oh yeah I'm going to do it asap' but still nothing happens....my husband is actually having a mental breakdown over this as its taking over everything for the past year!

System · 16 April 2019 at 2:54PM

Surely not everyone needs to sign the paperwork, if you all own a share in the freehold then all you need is a majority in agreement to make the changes.

Happy to be corrected

SylviaB · 16 April 2019 at 3:02PM

well that is what we are being told by the solicitors, that each owner has to sign it.

Soundgirlrocks · 16 April 2019 at 3:46PM

I just wanted to say I feel your pain, nag nag and smile and nag!

We are in the same boat, it has taken me 3 years to push it through despite everyone wanting it, and having paid for it! Some leaseholders have had 4 sets of documents, one forgot he had a second charge. We finally started to make headway once I had another leaseholder who is trying to sell so we were both chasing the outstanding paperwork. Unfortunately people don't see the urgency unless it having a direct impact on them.

eddddy · 16 April 2019 at 4:31PM

Simonr66 wrote: »

Surely not everyone needs to sign the paperwork, if you all own a share in the freehold then all you need is a majority in agreement to make the changes.

Every leaseholder's lease probably has to be changed - to allow the other leaseholders in the block to sublet.

Nobody can force a leaseholder to accept changes to their lease.

(It doesn't matter if it's a sole freeholder, a majority of the joint freeholders, or 100% of the joint freeholders - they cannot force lease changes on a leaseholder.)

So even just one leaseholder can block the process.

SylviaB · 16 April 2019 at 4:46PM

Thanks for your comments everyone.

I understand from previous comments that we can't force anyone to sign a new lease (frustrating as this is as it is hindering our sale) so,

Basically, I just want to know of we can take legal action against the other lease holders who are ALREADY letting their flats knowing they are is in breech of the current lease (current lease doesn't allow subletting) and are just doing it anyway.

Many thanks

eddddy · 16 April 2019 at 4:58PM

SylviaB wrote: »

Basically, I just want to know of we can take legal action against the other lease holders who are ALREADY letting their flats knowing they are is in breech of the current lease (current lease doesn't allow subletting) and are just doing it anyway.

Yes - typically a lease will allow freeholders to...

Write letters to a leaseholder telling them to stop breaching a covenant - and charging the leaseholder a reasonable admin fee for sending a letter

Instruct a solicitor - and charge the leaseholder for the solicitor's fees

Start court proceedings to forfeit the lease for beach of covenant. i.e. The freeholders could potentially repossess the flat

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Lease renual issues

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