I have just finished a tortuous basement conversion to my flat. My freeholder was very helpful dealing with my 2 fellow leaseholders (who objected) to get the project up and running. He didn’t have to do this but he had sold the flat to me (for a very good sum because of the `hope’ value of extending the flat) and so he said this was the right thing to do. We became quite good friends and would meet up for drinks and chat on the phone.
I was always quite wary of him as he had fallen out with all my co-leaseholders before I bought the flat, which sadly made my life extremely difficult as they loathed him so much. I made an effort to get on with him as I knew he could be tricky and I needed him onside to push this through. TBH, if I’d known they all had `history’ and that one of them was a litigious solicitor I never would have bought the flat but there we are (it wasn’t disclosed when I bought the flat as the falling out hadn’t resulted in solicitors letters etc).
He asked me to lend him a large sum a few years ago. It was a proper business loan with a bit of interest – fortunately he did pay me back within the agreed timeframe. Retrospectively I was mad to do this as his finances are chaotic and he is always teetering on the brink of bankruptcy, but I felt obligated as he had helped me out.
By now, my 2 co-leaseholders were taking legal action to stop me putting in a light well to the basement (I won’t go into the complexities of this here). I had to instruct a solicitor and it was eventually sorted out and relations became amicable with them both.
We began to discuss buying the freehold from the freeholder, which is something he was keen to do. However, I thought it would be prudent to finish building the light well before acquiring the freehold as while relations were now amicable between me and the neighbours, they are very tough and I thought better safe than sorry. My freeholder said he really needed the money for the freehold but said if I paid him the money up front he would delay triggering it until the light well, was completed.
So in April 2017 I advanced him £15,300 with the understanding that when the vexatious light well was built, he would begin the business of selling us the freehold and the neighbours would then pay me their share rather than him as I had defacto bought the freehold in advance.
The light well was built by November that year and I politely kept asking if he would start the process. 7 months later he had still done nothing (of course he had no incentive as he’d already been paid) and by this time my co-leaseholders were keen to crack on so we hired a solicitor and we are now weeks away from buying the freehold (the freeholder is part of this process and is completely on board). He and I had by now fallen out as he’d asked me to store a load of his furniture for free in a barn I had at that time and had rudely ignored my requests that he move it as the barn was to be used for something else.
10 days ago he sent out service charge bills to us all (mine was £1.200), which he said was for insurance on the building that he’d had to renew, plus a £100 `handling’ charge for his time.
I explained politely that he still owed me £15,300 and I would settle up the service charge once this business had completed – probably only a few weeks away now - and asked to see receipts for the insurance (as he is slippery). I told him that the delay in getting the freehold meant I’d delayed selling my flat resulting in cash flow issues (which will be resolved once we have bought the freehold as my co-leaseholders are paying me back for their share).
My feeling is that he can jolly well wait a bit longer for his service charge given that I made this loan on the understanding he would crack on with what he promised to do. He’s had my money for 18 months now and while I’m pretty sure the freehold will go through I’d rather be quite sure before I dish out any more money.
Congratulations if anyone has made it to the end of this complicated story and understands it.
I’ve been having therapy over the last year and I’m now nipping cheeky fuckery in the bud but unfortunately still reaping the effects of being a soft touch over the years.