Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

Leasehold/freehold title change

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Leasehold/freehold title change

    We are trying to buy a share of freehold 2 bedroom flat but there is a problem with the titile.

    One of the names on the leasehold/freehold of the building is incorrect (not the flat we are buying) and the seller needs to wait for the person who owns the flat to amend the name on the title and then the person can give the seller a signature to transfer the share of freehold title to us.

    What does it mean? and how long does a name change takes normally?

    The estate agent is telling us that the name change can be done easily and quickly, and the title is not a huge problem as it won't affect our ownership entitlement. Should I take his word and proceed to exchange while waiting for the name change? Please help

  • #2
    Re: Leasehold/freehold title change

    I am not completely clear as to what you mean so I will make some assumptions:

    You (U) are buying a leasehold flat from your seller (S).
    There are some other flats - lets say 3 of them and the leases of them are owned by X,Y and Z.

    However the freehold is owned by S, X, Y and someone else (Q).

    You want the freehold transferred so it is owned by X,Y, Z, and U.

    To do this XYZS will have to sign a transfer to XYZU. Problem is that Z doesn't have his name on the freehold title so they have got to get hold of Q to sort this out. The big question is whether anyone knows how to get hold of Q and if they can whether he will be bothered to get involved.

    It is unfortunately a standard problem with shared freeholds where the freehold is literally owned by individuals. If, for instance, Q had his leasehold flat repossessed his mortgage lender could only sell his leasehold title to their buyer but could not pass the "share" in the freehold over. Once one flat is repossessed and the leasehold title sold the freehold effectively goes into limbo. To do something about it can then be very expensive and involve court and/or LVT proceedings.

    If this is the case then you need to dig deeply to find out why the estate agent thinks it is a formality. There could be an innocent explanation or my general assumptions may be wrong but I would be suspicious.
    RICHARD WEBSTERwww.rwco.co.uk
    As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

    Comment


    • #3
      Re: Leasehold/freehold title change

      Richard is of course right.

      And I would add, why are you taking such advice from the Estate Agent? I would take the advice from the person with the professional qualifications in managing such a transaction - your solicitor! It is not clear where in the buying process you are.

      When the two solicitors (yours and the vendor's) speak then all should be fully expedited. If you need a specialist in enfranchisement if things get messy, or if you want some specialist advice, try contacting someone local to you by searching at the Association of Leasehold Enfranchisement Practitioners (ALEP - search for their web site) for a nearby member.

      Alternatively, it may be as messy as Richard suggests. Depending on how much of a hurry you are in, maybe wait and make clear to the vendor you can step in if they really struggle. Because most potential buyers would (and arguably should) just walk away in a buyer's market.

      Comment


      • #4
        Re: Leasehold/freehold title change

        I've since added some pages ot my website about some of these issues and problems - see The Pros and Cons of Shared Freehold Flats | Conveyancing Issues about Share of Freehold Apartments | Kinds of Shared Freeholds
        RICHARD WEBSTERwww.rwco.co.uk
        As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

        Comment


        • #5
          Re: Leasehold/freehold title change

          I would agree that it is best to take advice only from a solicitor. Estate agents tend to have big opinions of themselves. The way they strut around with their clipboards never fails to amuse me. Personally I do not think they should consider themselves "professionals" as the work they do is hardly rocket science. I look upon them as being on a par with shop assistants or supermarket check out operators.

          A few years ago I received a letter from an estate agent written in a rather pompous manner and signed [name] followed by the letters "FNAEE." I wrote back inviting reference to those letters and further commenting: "What will we have next, the Guild of Used Car Salesmen!"

          Comment


          • #6
            Re: Share of Freehold

            Hi All,

            I am very new to all this and am looking for some advice on a share of freehold property I have just bought. The lease clearly states that tenants need to look after communal areas however the front of the property has fallen into disrepair and I have a surveyors report saying the front wall is unsafe and will collapse at any time. I am the basement flat but my demise ends at our front door so the front communal area includes our stairs and front porch which are also considered dangerous due to subsidence.

            Unfortunately the 4 other tenants do not want to spend any money how can I force the issue.

            Thank you for any advice in advance.

            Comment


            • #7
              Re: Leasehold/freehold title change

              Did you know about this problem before you bought the flat? If so, did you talk to the other flat lessees about it beforehand?

              Lot easier to walk away from a situation than to get embroiled where all the solutions costs lots of money stress hassle and time.

              If you can obtain professional opinions to the effect that the work must be urgently carried out then you will have threaten to go to court to force the others to a) allow you to do the work and (b) contribute towards its cost. This could cost several thousand pounds.

              Shared freeholds can be better than having an outside landlord but there are pros and cons - see The Pros and Cons of Shared Freehold Flats | Conveyancing Issues about Share of Freehold Apartments | Kinds of Shared Freeholds
              RICHARD WEBSTERwww.rwco.co.uk
              As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

              Comment


              • #8
                Re: Leasehold/freehold title change

                When I first read your post I thought you were saying that the front wall of the house was in imminent danger of collapsing I then read it again and realised you meant the front wall of the property i.e. boundary wall
                I think if it were me, I would immediately remove the wall as much as possible so as to avoid any potential injury if it did collapse, either to yourself or someone passing (I don't know but I guess you could be sued if it did).
                If, as you say, the front of the building is suffering from subsidence damage, wouldn't the buildings insurance cover the cost of repairs?
                Last edited by Kaz; 27-02-2011, 04:38 PM.

                Comment


                • #9
                  Re: Leasehold/freehold title change

                  We have bought a flat which had been repossessed by the bank. We now wish to proceed with the freehold, but we are unable to trace the previous owner for his signature. Is there any thing we can do to proceed with this process.

                  Comment


                  • #10
                    Re: Leasehold/freehold title change

                    You and the other flat owners will have to club together to apply for collective enfranchisement.

                    If the freeholder can't be found then you have to apply to the court for leave to dispense with serving the freeholder with the application and then you have to go through the procedure in the Leasehold Valuation Tribunal. This could all cost quite a bit in legal and surveyor's fees not to mention whatever the LVT requires you to pay as a premium for the freehold.

                    I assume you bought this flat very cheaply and your solicitor pointed all this out to you as you will have difficulty selling with an absent freeholder.

                    If the other flat owners are apathetic and can't get 50% of them together then you are stuck.

                    Moral - don't buy this kind of flat unless it is very cheap.
                    RICHARD WEBSTERwww.rwco.co.uk
                    As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

                    Comment

                    Working...
                    X