Hi. I purchased my lease in 2004, and was informed by the solicitor just whilst drafting the contracts that the landlord is absent. The person I bought from was told exactly the same, and they arranged for indemnity insurance. I understand that the landlord has been absent for around 10 years.
Myself and another leaseholder pay for all refurbishment repairs jointly. I think we have had to spend around £4k over the last few years collectively. Is there anyway of getting this taken into consideration? I have done my best to trace the landlord, the landlords address stated in the lease is no longer owned by him. In fact our local MP lives there for the last 8 years.
I have searched the voters roll and telephone book, and cannot find him. The builders on the plans, and the firm of solicitors stated in the agreement no longer exist. I would now like to extend my lease or purchase the freehold, whichever is the cheapest.
I have 76 years and three months left on my lease. I bought for 94k in 2004 and similar properties are around £109k now. Ground rent (if demanded) is £1 per annum.
Your help is greatly appreciated. Thanks
Hi, I believe I have answered your question via TJM Law direct, but for the sake of others and this forum, I will respond here too.
Essentially, if you proceed to extend your lease, you need to have owned your flat for at least 2 years, which you have. It involves a court application to obtain an Order from the court that you have a new lease granted under the terms of the legislation i.e. 90 year extension with zero ground rent.
However, most people in your situation opt for buying the freehold instead, which has the following advantages:
You pay no “marriage value”, which could save you potentially thousands of pounds. With a lease extension, if your lease has less than 80 years left, you do pay “Marriage Value”.
You share the total professional costs, whereas with a single lease extension, you pay 100% of the total costs.
You then have the opportunity to extend your own leases to 999 years, with zero ground rent and also the ability to modernise your lease if and where necessary.
You avoid a future buyer pulling out of the purchase of your flat on the basis there is a missing freeholder, because the freeholder will be you, collectively.
Selling your flat “with share of freehold” will increase the marketability when you come to sell your flat.
With the freehold, you never have to worry about extending the lease again or being concerned about the reducing term of the lease. Your investment is therefore better protected.
Of course, to proceed with buying the freehold, you need to fulfill the qualifying criteria, of which the main one is to have at least 50% of all flats participating. Also, where there are just two flats in the building, BOTH flats must proceed together.
Tom
IMPORTANT NOTE: MY COMMENTS ABOVE ARE SIMPLY THAT – COMMENTS. THEY ARE NOT TO BE TAKEN AS LEGAL ADVICE, WHICH CAN ONLY BE GIVEN TO FEE-PAYING CLIENTS.