Have I been scammed into Leasehold?

Have I been scammed into Leasehold?

9:30 AM, 9th July 2021, About 2 months ago 64

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I have just purchased a house from an auction and the legal pack said the house was Freehold, even Land Registry right now says the house is Freehold

However, only one day before the auction, the auctioneers put a document in the legal pack saying it has a 999 years Leasehold.

How can I solve this issue?

What are my rights at Auction, and have I been scammed?

Thank you for any assistance

Andrew



Comments

by alocjtoi

21:14 PM, 10th July 2021, About 2 months ago

Reply to the comment left by andrew samuel at 10/07/2021 - 14:16
Andrew, I understand the situation and feel your frustration. It is very likely that the tactic used was a deliberate intent to mislead, however you are very unlikely to be able to prove this. I can only imagine you would have a remote possibility of a recourse if you made your bid before the changes were published, for example if you instructed the auctioneer to bid on your behalf and they then failed to update you on the changes to the legal pack. However judging from the previous conversation this is probably not the case.

by Katiejane13uk

9:13 AM, 11th July 2021, About 2 months ago

Reply to the comment left by Tim Rogers at 09/07/2021 - 13:13
You can only force sale of freehold if you have owned for 2 years

by Katiejane13uk

9:16 AM, 11th July 2021, About 2 months ago

Hi. I run the National Leasehold Campaign (NLC) that a few have mentioned in comments. I am also a trustee of LKP. This sharp practice is something we are trying to stop. The Competition & Markets Authority have launched enforcement action against developers & freeholders for some of this stuff. What Does the ground rent section say. How much is it current and how does it escalate? Please contact me

by Gracie

9:46 AM, 11th July 2021, About 2 months ago

What were your plans with this property, to live or or ret?
You need to wait 2 years before you can buy the freehold - (the best option) or extend the lease (2nd option but will be able to reduce the ground rent to a peppercorn) So I'd suggest you refurb asap, let it, start earning money, & in 2 years you'll be able to take action. Hopefully in that time, the ground rent issues that the government is currently limiting to new builds will roll our to private freeholders too. Unfortunately you have learnt the hard way how auctions work.

by Tim Rogers

10:35 AM, 11th July 2021, About 2 months ago

Reply to the comment left by at 11/07/2021 - 09:13
Interesting, I was unaware.
Are you able to point me to the legislation on this?

by Tim Rogers

10:38 AM, 11th July 2021, About 2 months ago

Reply to the comment left by Gracie at 11/07/2021 - 09:46
It also has the benefit of being able to offset the ground rent against tax.

by andrew samuel

10:43 AM, 11th July 2021, About 2 months ago

Reply to the comment left by at 11/07/2021 - 09:16
hi, 1000£ a year, it doesnt mansion escalating

by Katiejane13uk

10:48 AM, 11th July 2021, About 2 months ago

Reply to the comment left by Tim Rogers at 11/07/2021 - 10:35
A lease extension on a gr of 1000 pounds will be expensive but you do have the statutory right to do this after 2 years. You mentioned the freeholder is the council. I would be very interested to know how this house ended up with a 1000 per year gr ?

We are working with government to legislate to allow people to buy their freeholds easier cheaper and quicker. But there is still alot of work to do.

by andrew samuel

14:06 PM, 11th July 2021, About 2 months ago

Reply to the comment left by at 11/07/2021 - 10:48
katie, i am not sure how it ended up beeing a council freehold

if the ground rent goes down, would you think the freehold buying price would go down aswell? or will there be another type of maths involved after the new law

by Katiejane13uk

14:26 PM, 11th July 2021, About 2 months ago

Reply to the comment left by andrew samuel at 11/07/2021 - 14:06
The new laws that are being brought in will not change existing contract law. The lease is the lease and the terms of which will remain. However the method to calculate the cost of the freehold is set to be easier cheaper and quicker. However having such a high gr to start with is going to be very costly in buying the freehold. Please do contact me at the NLC as I would like to help and know more.


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