Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
I have purchased a property from auction on 25th April 2019 and today is the completion date. We were happy with the property until we found out there was a commercial lease attached to a residential house this was after the purchase.
We saw the property advertised with Auction house tenure it stated see the legal pack. I cheeked the legal pack on 14 April 2019 10 days before the auction. Legal pack included Title register which stated the property was freehold and there was nothing in the legal pack stating property might be sold as a leasehold.
1. During these 10 days I was NOT informed of any changes to the legal pack.
2. Auction addendum did NOT mention any changes to the legal pack.
3. Auctioneer did not mention any changes to this legal pack.
4. Auction house claimed automatic email was sent to me informing of this change I have confirmed to them I did NOT receive any email showing changes to the legal pack. I have requested evidence of the email they have NOT produced any yet.
5. Word freehold in the title register was NOT blanked.
6. There was no mention of property being sold as a leasehold in the legal pack or nothing stating lease might being prepared.
One day before the auction 24th April 2019.
1. They inserted a lease document stating property being sold as a 999 year lease.
2. they inserted a commercial lease for a residential terraced house.
a. lease states if we let property for more than 12 months we have to get permission from the freeholder and we have to pay for the cost.
b. Property cannot be let to students, HMO, Holiday lets etc.
c. We need to up keep the property but property we bought is derelict it needs doing everything.
d. They state we need to maintain all the fitting and fixtures but property does not have kitchen or bath room, heating etc.
e. The lease is so strong we cannot get mortgage on this property.
I have written to the auction house asked for the followings.
By putting the property back into your next auction it will save all the party’s lot of time and money. If the property is NOT re-advertised in your next auction than I have no choice to take legal action against the North West auction house.
It is clear the from the evidence seller had the attention to sell the property as a leasehold from the outset and he was well aware the property will have NO value as a leasehold property. Therefore he cleverly inserted the lease document in the pack with your knowledge on the last day of the auction and you have completely failed to inform me property will be sold as a leasehold during your 36 days of advertisement.
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