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Leasehold property

Discussion in 'General Business Forum' started by busowner987, Jun 17, 2020.

  1. busowner987

    busowner987 UKBF Regular Free Member

    215 13
    We are in the process of selling a property which is lease hold.

    The freeholder (a builder) has been nightmare to deal with over the years. I asked for copy of the buildings insurance months back and never got it.

    I have a feeling the documents I am asking for ie the lease, buildings insurance etc will not show for many moons.

    What are my options?
     
    Posted: Jun 17, 2020 By: busowner987 Member since: Aug 27, 2019
    #1
  2. Stas Lawicki

    Stas Lawicki UKBF Regular Free Member

    355 145
    Well, if you're selling, you need to sort it or any buyer won't want the hassle (a well advised one anyway).

    How many other leaseholders are there and how long have you lived there? Depending on the answer you might be able to serve a section 21 (I think it's 21) under the leasehold reform act allowing you and the majority of leaseholders to enforce the joint purchase of the freehold and reduce your ground rent to zero. There is a process and it involves surveyors and costs. It might not be applicable in your situation but should be explored. You can also serve this notice on behalf of a new purchaser so even if you didn't go through it all, they might.

    Advantages here are:

    Removing the current freeholder
    Extending your lease as part of s of f
    Reduce ground rent to zero
    Right to self manage

    You might be able apply to the courts on account of an absentee freeholder (although you'll need to determine if they are absent or just unhelpful, either way there should be a way of enforcing action).

    My knowledge on this is quite old now so you'll need to verify the options.

    Is it commercial or resi? Are there other leaseholders and are you talking about lease as in short-hold or long-hold?

    If it's an office and on a short term lease, ignore everything I have said above!!!
     
    Posted: Jun 17, 2020 By: Stas Lawicki Member since: Nov 14, 2017
    #2
  3. busowner987

    busowner987 UKBF Regular Free Member

    215 13
    Thanks for your info.

    This is a private residence.
     
    Posted: Jun 17, 2020 By: busowner987 Member since: Aug 27, 2019
    #3
  4. Annoying Donkey

    Annoying Donkey UKBF Ace Free Member

    2,878 997
    To be pedantic, a peppercorn rather than zero...
     
    Posted: Jun 17, 2020 By: Annoying Donkey Member since: Sep 13, 2009
    #4
  5. Stas Lawicki

    Stas Lawicki UKBF Regular Free Member

    355 145
    Zero if you enforce purchase of freehold. Can't remember what section notice that is but similar process as lease extension.

    Ten years since I was involved in one so my limit knowledge is lacking (not as far as trump and his magic light cv cure though...)
     
    Posted: Jun 17, 2020 By: Stas Lawicki Member since: Nov 14, 2017
    #5
  6. Jatinder Dhanoa

    Jatinder Dhanoa UKBF Newcomer Free Member

    1 0
    Before this can be achieved you will need to have a professional valuation and get some legal advice. Most freeholders are unwilling to relinquish their freeholds and so the process becomes protracted. There are a number of qualifying criteria which you will need to meet before you can enfranchise which the correct professionals can assist you with.
     
    Posted: Jan 12, 2021 By: Jatinder Dhanoa Member since: Jan 12, 2021
    #6
  7. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    5,200 2,094
    I believe there is new reform coming in this area.
     
    Posted: Jan 12, 2021 By: Mark T Jones Member since: Nov 4, 2015
    #7