Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
I will try and explain this the best I can but it confuses the hell out of me so here goes. In 2009 I bought 2 leasehold flats, shortly after the builder/freeholder who is registered in Guernsey went bust owing money to the bank, the council and a solicitor who also ended up bust.
However the builder/Freeholder just before he went bust transferred the freehold into a sister company also registered in Guernsey. While all this was going on our Management company that was also owned by the original Builder and was registered as Dormant was not doing the maintenance etc…that we were paying for so we all formed a residents association and withheld service charge money on the grounds that they were not doing anything.
We then formed our own RTM and managed things ourselves. Now here comes the problem, none of us have been paying ground rent since 2009 because we have not been billed or if we were billed it was by the management company and it wasn’t done correctly plus we were not told about the transfer of the freehold (to his other company) so we assumed that it was being dealt with by the receivers because our original freeholder went bust.
Now our new freeholder (still the original one but different company) has got a solicitor on to us saying pay up or else, BUT we have had contact with our local council and have it on good authority that the transfer is being investigated by Crown Estates, because they think it was transferred illegally between the 2 companies just before the first company went bust, apparently this is legal practice in Guernsey but because the companies were operating in the UK then they should have operated according to UK law not Guernsey law.
So the question is should I pay this Freeholder the ground rent owed or not?? Plus as I understand it we were supposed to receive a S3, S3A or section 5 notices regarding the transfer of the freehold which we did not.
Any advice would be fantastic!!
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