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Lease advice

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  • Lease advice


    I was wondering if anyone had any experience of this situation.

    I'm thinking of putting an offer on a 60's maisonette which has over a 900 year lease. However the freehold isn't owned by anyone as the previous freeholder went into liquidation.

    This has been the case for the last few years, the ground rent has been collected in a pot each year and a receipt given so that the freehold can be purchased by a prospective buyer.

    The local residents (it's a block of 6 maisonettes) have clubbed together and insured all the public areas and buildings.

    What I'm wondering is if I'm heading for trouble with this situation & if conveyancing fees are likely to be more than normal? Also does a new freeholder have the right to charge whatever they want for a new ground rent? It's currently just £5 a year.

    Many thanks for any help.

  • #2
    Lease Advice

    I think you will find that someone, somewhere does own the property freehold even if it's the official receiver. It may be the management company (the company that maintains the building) that went bust. You'll need advice but there are circumstances where the leaseholders have the right to set up and run their own property management company. This may well be one of those circumstances, you may even be able to buy the freehold too, it's something the current maisonette owners should certainly look into. If they can do this then they will be able to control all maintenance costs with no suspicion that they are being overcharged on services fees etc... You / they need a solicitor.
    Bridging Loans | Property Development Finance


    • #3
      If the freehold was owned by a limited company that has been dissolvved then its assets would have gione to the Crown. You would need to approach the Treasury Solicitor's bona vacantia department to see if you could buy the freehold.

      The lease governs the ground rent and maintenance arrangements. Changing the freeholder doesn't alter that.

      As a conveyancing solicitor I believe the information given in the post to be useful (assuming th property is in England/Wales) but I accept no liability except to fee-paying clients.
      RICHARD WEBSTERwww.rwco.co.uk
      As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.