Can a freeholder backtrack on a signed lease agreement?
I know we will need professional legal help very soon but just in case anyone has come up against this.
We are an RTM (Right to Manage). We used the existing managing agent for the first year (long story), changed agents, and now everything is working well. Our porter has use of a flat owned by the freeholder, with rent and all costs paid via the service charge — this has always been the case.
Freeholder insisted on change of managing agent that the RTM took on the lease of the flat – it has taken 9 months of negotiations to agree.
We had everything all agreed and signed and the Freeholder is now saying that they will only give a 3 year lease not the 5 year we agreed and now threatening legal action if we don’t sign for 3 years. The 5 year was signed, and independently witnessed as they insisted. The solicitor we are using for this (obviously fees increasing) says that it is clearly personal animosity towards us. Until RTM we have not had any contact or need to contact the freeholder as all went via their managing agent.
They’re now threatening “possession and compensation” if we don’t agree to the three years by December 24th (letter received yesterday, December 18th). They are also claiming they “do not accept” that the lease terms were agreed, even though they wrote the lease, sent it to our solicitor, and we signed and returned it.
We haven’t paid rent this year, as it hasn’t been demanded.
They say they do not accept that the terms of the lease have been agreed. They wrote it and sent it to our solicitor, we signed it and returned it.
Any advice would be welcome.
Thanks,
Elizabeth
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Member Since January 2020 - Comments: 559
10:25 AM, 20th December 2024, About 1 year ago
What advice is your solicitor giving you?
I doubt that this forum will be able to give you a definitive answer on this point, but for me the key question is around completion of the lease – has it actually completed? At five years it will need to be a deed so there are protocols on signing and completion, but really your solicitor should be giving you this advice.
Member Since May 2014 - Comments: 271 - Articles: 2
10:45 AM, 20th December 2024, About 1 year ago
Reply to the comment left by Graham Bowcock at 20/12/2024 – 10:25
Thanks, I assumed this but with Christmas break on our doorstep and being pushed to agree to the new demands I just hoped there would be someone who had an idea – as they didn’t sign they it hasn’t completed but they did send what was the agreed version to us for signing and insist on an independent witness – then changed the terms.
The solicitor we are using has advised that they will carry out their threat of repossession of the flat plus damages given their behaviour during the last year – all seems to be a game to the freeholder.
If we sign for 3 years we will be doing this again in another year as we’ve 2 years left and it took a year to agree.
Thank you.
Member Since October 2020 - Comments: 1174
10:47 AM, 20th December 2024, About 1 year ago
The lease would need to be signed as a deed, which means its not executed until all parties have signed. Speak to your solicitor again. Today is probably their last working day this year.
Member Since October 2022 - Comments: 410
12:15 PM, 20th December 2024, About 1 year ago
Reply to the comment left by DPT at 20/12/2024 – 10:47
Contact Leasehold Advisory Service today.
You said the transfer of the freehold of your building to the RTM is now complete. The transfer allows Leaseholders to take over the management of the building’s freehold.
The RTM ( registered limited liability at Companies House) cannot vary the terms of the lease except with consent of a judge.
The concierge accommodation does not fall under the lease. It is rental under his employment contract now with the RTM.
The ex-freeholder now has no role.
Find a solicitor who is competent in conveyancing leasehold with share in freehold held by RTMs
Member Since July 2013 - Comments: 754
1:16 PM, 20th December 2024, About 1 year ago
What rent haven’t you paid? If it is ground rent, you are likely playing into the freeholder’s hands – ground rent is usually payable whether demanded or not – check your lease(s). You must pay it asap to protect your interest.
Member Since May 2014 - Comments: 271 - Articles: 2
2:08 PM, 20th December 2024, About 1 year ago
Reply to the comment left by Freda Blogs at 20/12/2024 – 13:16
We pay rent to the freeholder who is the owner of the flat for the porter to reside in the building – not ground rent.
Member Since May 2014 - Comments: 271 - Articles: 2
2:21 PM, 20th December 2024, About 1 year ago
Reply to the comment left by Kizzie at 20/12/2024 – 12:15
It is the rental contract that is being altered – a new contract between us and the freeholder as owner of the flat rented to the porter – it is referred to as ‘the lease’.
Member Since October 2022 - Comments: 410
4:29 PM, 20th December 2024, About 1 year ago
From what you’ve said the RTM is now the freeholder and all long leaseholders in your block are members ie share in freehold held by your RTM and bound by its Articles of Association
Member Since May 2014 - Comments: 271 - Articles: 2
8:12 PM, 20th December 2024, About 1 year ago
Reply to the comment left by Kizzie at 20/12/2024 – 16:29
We don’t own the Freehold, we act for the Freeholder, we don’t own the flat or rent from a third party the Freeholder oowns the flat , unless our solicitor has made a huge error advising us it sounds as if we are having to just suck it up.
It will be something I’ll check with the Leasehold Advisory Service but may be all academic by then.