When a Freehold is bought can an existing lease be changed or altered?
I have owned a flat for about 7 years or so, I am a leaseholder, the lease has about 120 years or so to run.
It was formally owned by the local council and the council have sold the block to an independent Landlord. I have the first floor flat.
The new Landlord has also bought the ground floor flat as well as the Freehold.
Question : Can the new Freeholder disregard the existing Lease arrangement? Would they be able to force me to sign a new lease or something similar?
What should I watch out for? What are the possible repercussions of such a purchase. They did offer to buy my property at 40% below market value which I refused, I feel like I am walking around with one of those laser red dots on my body that you see in the Gangster movies. I am waiting for “Crack” of the rifle!
Any forward thinking advice or evasive moves much appreciated.
Richard
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RPI linked lease extension calculation
Member Since February 2011 - Comments: 3453 - Articles: 286
10:39 AM, 17th May 2016, About 10 years ago
Hi Richard,
I would double check with the Leasehold Advisory Service. See >> http://www.lease-advice.org/
Member Since July 2015 - Comments: 154
12:25 PM, 17th May 2016, About 10 years ago
No they cannot just force you to change your lease. If you approach them on an informal basis to extend your lease they could offer a new lease with different terms, if you extend your lease using the statutory terms route then it would be on the same basis as your existing lease other than a peppercorn rent.
If the lease is defective then they could apply to the FTT to make changes to correct this.
They could enforce the terms of the existing lease which the previous freeholder may have been more relaxed about.
As Neil says for more details contact lease.
Member Since August 2014 - Comments: 131
12:47 PM, 17th May 2016, About 10 years ago
Thank you gentlemen. The freeholder that I am now answerable to has a rep for not being very nice.
It’s a bit of a bugbear really as I really like the flat great views good position really generous size.
Just the dark spectre of this new guy looming large.
I’ll let you know how things shape especially if there are any questionable moves by this individual.
Member Since December 2015 - Comments: 828
11:43 AM, 18th May 2016, About 10 years ago
were you notified council was selling freehold? do not section 5 notices have to be issued?
Member Since August 2014 - Comments: 131
3:53 PM, 18th May 2016, About 10 years ago
Hi
I was not formally informed by the council that they were selling the freehold.
Ie I did not receive a letter or was not written to.
Is there an obligation for them to have done so?
What would be issue exactly?
Presumably both parties solicitors would have been aware of any legal responsibilities to do so?
Member Since September 2013 - Comments: 232
5:30 PM, 18th May 2016, About 10 years ago
Neil is right. Look at http://www.lease-advice.org/ This is a government site. They are really helpful and will actually speak to you on the phone too.
Check this out, but one thing I notice is that your new landlord has a flat in the block, which I think means that in the future he can offer the freehold for sale on the open market with out offering it to the tenants first.
The tenants usually have the right to collectively buy the freehold at any time. There is a formula for doing this, similar to lease extensions.
Member Since September 2013 - Comments: 232
5:32 PM, 18th May 2016, About 10 years ago
Re Terry Sullivan question. You will find the answer on the leasehold advisory service site. But I think councils and some trusts have an exemption from this rule.
Member Since September 2013 - Comments: 232
5:32 PM, 18th May 2016, About 10 years ago
Reply to the comment left by “terry sullivan” at “18/05/2016 – 11:43“:
You will find the answer on the leasehold advisory service site. But I think councils and some trusts have an exemption from this rule.