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Buying freehold from freeholder

7 replies

Nesski · 27/02/2021 06:24

Hello,

We currently live on the top floor of a two floor maisonette and the freeholder owns ours and next door's aswell, therefore 4 properties in total.

There is still 150 years left on the lease and there is no rent nor service charge, the previous owner of our place had the lease extended back in 2016.

The four property owners couldn't come together to agree on buying the freehold, my understanding is that we don't actually need all four to collectively apply for the freehold so I wanted some advice on the following of anyone has experience.

  1. should me and downstairs apply for freehold together and sack the other two
  2. how complicated is it to get it? My understanding is that we need to get a lawyer in the put a valuation together for how much the freehold is, and then propose this to the freeholder
  3. what blockers could I face?

Any help would be really appreciated!

OP posts:
Nesski · 27/02/2021 18:06

Anybody?

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GETTINGLIKEMYMOTHER · 27/02/2021 18:59

Not sure this will be much help, but here goes.

We bought a LH upper floor maisonette (one of just two). The freeholder had sold the upper flat to our vendor some years previously, and had apparently disappeared - he hadn’t requested any ground rent (which wasn’t too much) for several years.

It was thought that he’d returned to his native country and his being supposedly absent, caused a lot of problems with the purchase. I eventually found him via a tracing service - he was hiding just a couple of miles away, under another name, because of debts attached to the freehold!

At first he denied any knowledge of himself, but popped up as soon as he thought there was going to be money in it!

I do advise using a specialist solicitor. We started with the High St one who was handling the purchase, but he was useless. The specialist was miles better, but it still took a long time. The owner of the lower m’ette didn’t want to buy her share, so we bought the whole.

The price was worked out officially - there’s a formula, according to length of lease, current price, ground rent, etc. The FHolder can’t just ask what they like. It was v annoying that the FHolder sent someone round to value the place after we’d spent a lot of money doing it up, though - it was pretty much a dump before.

Having asked for no ground rent for years, our FHolder then claimed that he’d submitted invoices and the previous owner hadn’t paid - I’m quite sure he was lying, but by law we got stung for 7 years of it - thankfully not a huge amount.

It was all finalised at a tribunal - well over a year after we’d started the process.

In spite all the hassle and shenanigans, I’m really glad we went ahead and bought it - will save any problems if and when trying to sell in future, and means that we can make changes (e.g. a loft conversion) if we ever want to, or a future owner could, without having to get permission from the FHolder, or pay them a fee.

Nesski · 27/02/2021 19:36

@GETTINGLIKEMYMOTHER sounds like a right mare!!! Just another question, how did you submit the request for purchasing the freehold? Any official channels or just an email?

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MinnieMountain · 27/02/2021 19:54

There’s good advice here: www.lease-advice.org/fact-sheet/collective-enfranchisement-buying-freehold-building/

GETTINGLIKEMYMOTHER · 28/02/2021 07:57

@Nesski, once we’d finally found the bloke, we wrote to the address the tracing service gave us - no reply. So we called round to the address (he’d bought that property soon after selling the other) but he answered the door and denied all knowledge of himself!

So it went ahead as an ‘absentee freeholder’ case, but he popped up soon enough, scenting £££. Would have been simpler TBH if he really had been absent - the money we paid would have gone into one of those accounts (escrow?) in case he did ever reappear.

I should imagine an email would be fine now - you instantly have a record.

You don’t say where you are, but we used Ringley Legal, London based, if they’re still going of course.

GETTINGLIKEMYMOTHER · 28/02/2021 08:01

PS though just in case the person doesn’t check emails carefully, I think I’d put it in writing, too.

Nesski · 28/02/2021 10:44

@GETTINGLIKEMYMOTHER thank you! Yes London based, we don't plan on moving so would like to get the freehold and then consider a loft conversion to expand, v stressful as there are four of us in the lease (one who didn't play ball last time when the topic was brought up) so will check out what options we have!

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