So Upset Over Property Dispute

[kurotora]

I’m posting because I’m feeling pretty overwhelmed and could really do with some perspective from people who might have been through something similar.

We own a leasehold flat in a block. When we bought it from the developer years ago, the lease included a storage cupboard on the same floor. We’ve used it ever since, and since 2021 when the flat has been rented out, our tenants have used it too. No one has ever questioned this, and it’s just been treated as part of the flat.

Recently, another owner in the building (who live in India and have been renting their flat, but apparently now want to use it themselves) are now saying that this same storage cupboard actually belongs to them. They accuse us of taking their belongings from inside when we were given it as an empty unit when we bought from the developer in 2014! From what we can tell, it looks like there may have been a developer error years ago where the same cupboard was allocated twice on paper.

What’s really upset me is that they went ahead and changed the locks on the cupboard while our tenants’ belongings were inside. We requested the keys be turned over to our tenant until such time as this could be resolved since we both have paperwork stating we own it. Now we have been sent a very aggressive “letter before action” accusing us of unlawful use going back years and demanding a very large sum of money. They’ve copied in managing agents, the developer and even a law firm, which feels incredibly intimidating and stressful…especially just before Christmas.

We’re not trying to hang on to something that isn’t ours if the paperwork genuinely shows that, but we honestly believed we were entitled to use it and have never acted in bad faith. We didn’t sneak into anything, take anything, or knowingly use something that wasn’t ours. It was just something that came with the flat when we bought it and was on our lease.

The estate agent we have used to manage the flat agrees both our paperwork contradicts each other but have said we need to sort this out ourselves now.

I’m finding this really stressful because we don’t have spare money for legal battles, the tone of the emails has been frightening, and I feel like we’re being blamed for a mistake we didn’t make. I’m so anxious I’m shaking.

Has anyone been through anything similar with storage cupboards or other developer mistakes in blocks of flats? How did it actually end in real life? Did it really escalate into expensive court action, or was it eventually resolved more sensibly?

I’d really appreciate any reassurance or experiences. Please be kind, I’m having a bit of a wobble.

You need to get the EA to give you a copy of the thing that proves the cupboard was allocated twice.

I guess there's a point they could make that if you've had sole use of it for several years, it's only fair that it's now their turn?

Either way you need to get the other owner to be aware it in fact belongs to both of you. So the lock she placed on it with your tenants belongings inside isn't reasonable.

You need a property litigator to advise you on this. It’s possible that the conveyancing solicitor when you bought was negligent. It’s also possible that the developer made an error in allocating the same cupboard twice, in which case the claim is against the developer. Only one of you can own it so you will also need a court declaration as to who owns it now (and the other party will be entitled to damages to reflect the diminution in value of the property due to not owing the cupboard). The damages will be payable either by the developer or a negligent solicitor depending on where liability lies.

Which they’ve acknowledged…. Oops for them!

Spoken to our estate agent that manage the property for us. They’ve said our Landlord insurance (which they set up) won’t cover this because it’s not between us and the tenant, but sent me the details anyway to go over later.

They’ve told us the demand letter was laughable and the other side are, in Mumsnet parlance, complete CF. They have withheld our details from the other party because “they’re likely to bombard you” and won’t accept that it takes time to get the documents to solve the dispute.

Another big issue we have is that the other party will only allow our tenants access by phoning up their representative (they are still in India). It looks from what I can see online that we should be changing the locks back to protect our tenants belongings and “preserve status quo” until settled. But I get the feeling we will get a LOT of hassle. What should we be doing? 😣

I am going to be looking up a solicitor to advise regardless.

Can you confirm the dates of each of the leases?

I know the date of our lease, which is Dec 2014. They have not shared their lease but their title deed is dated Nov 2014. I don’t doubt theirs came first but obviously till this point we weren’t aware.

I've seen this with parking spaces. It sounds like a developer error not yours or your conveyancer's. They are being ridiculous asking you for compensation.

You can get a copy of their lease from the Land Registry. I can have a look for you to see the date of their lease if you like? PM me their title number (will be on their title register which you say you have seen a copy of?)

I would say it is definitely not a conveyancer error because how would they know what is in someone else's deeds, but it seems like a developer error to me.

I wouldn’t put up with this CF nonsense. I would break the lock. Retrieve the belongings and put your own lock back on your cupboard.

Disclaimer. I’m not legally qualified.

It's the date the lease was completed rather than the date that the clock started to run on it. Sometimes they are not the same.

Though it does seem that the neighbour's lease came first, in which case the freeholder had no right to then lease it to you.

Is it a communal use cupboard for storing vacuum cleaner, mop, bucket ?

Are there communal areas ?

Who cleans the communal areas ?

Do you have legal cover on your property insurance? If so use it.

Yep…letter before action suggests they can’t afford a solicitor. Send them a similar letter & wait it out. If you have deeds that say the cupboard is yours then I’d break the locks.