Have I been scammed into Leasehold?

Have I been scammed into Leasehold?

9:30 AM, 9th July 2021, About 3 years ago 69

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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


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Comments

andrew samuel

14:41 PM, 11th July 2021, About 3 years ago

Reply to the comment left by at 11/07/2021 - 14:26
thanks,

I have cheked NLC, but couldnt find an email or phone on National Leasehold Campaign site to contact you

you can contact me via andrew7samuel@gmail.com

I would gladly attent your rally

Mehdi Nili

18:30 PM, 11th July 2021, About 3 years ago

Reply to the comment left by Lindsay Keith at 09/07/2021 - 10:50
If you haven’t completed just walk away and fight for your 10%

Sally Mills

10:55 AM, 28th July 2021, About 3 years ago

You will have a mountain to climb to receive any redress for this. It’s not illegal practice but it’s certainly immoral. I would offload it when the time is right for your situation, I would also get some media coverage of your experience to warn others who choose to buy at auction. Our leasehold system is awash with feudal practice, many media sources will be happy to air your story.

Xiaolei

12:11 PM, 31st July 2021, About 3 years ago

I only just read this trail and the comments - what is the latest?

My suggestion to Andrew is:

1. Contact Which? legal: https://legalservice.which.co.uk/?utm_source=Which&utm_medium=Referral&utm_campaign=main_nav&utm_content=Legal# and https://www.which.co.uk/consumer-rights You need to be a member of Which? for this service: £29 one off joining fee and £9 a month. I have used them several time to fight "sharks" and won. If they can’t help you, they will point you to the right direction.

They have specialist consumer protection lawyers to give solid legal advice, but you need to action on the advice yourself. I think you might have a chance to recourse under Consumer Act 2015, i.e. goods / services must be sold "as described and fit for purpose” - you bought the house not “as described, i.e. auction house changed description after you had paid for it!

2. Check the implication of having £1,000 Ground Rent. I am buying a leasehold flat and my property lawyer wrote to me " once the ground rent exceeds £1,000.00, it changes the nature of the Lease from a Residential Long Lease to an Assured Shorthold Tenancy (AST). The significance of this is that if the ground rent remains unpaid for three months, the Landlord has the ability to forfeit the Lease. If the Lease were a Residential Long Lease, the court has power to grant relief and prevent the Landlord from forfeiting the Lease. If the Lease is an AST, the court has no such power and must terminate the Lease and give possession back to the freeholder. Consequently, mortgage lenders do not accept ground rent provisions that create this situation and will either require the lease to be varied or that suitable indemnity insurance is put in place.”

Fakhar Aziz

18:03 PM, 1st December 2021, About 2 years ago

Reply to the comment left by Sally Mills at 28/07/2021 - 10:55
I have also been scammed in exactly same way ,seller has added a lease doc a day ago and changed freehold to leasehold for 500£ per year also the documents have got title defect please advise.

Sally Mills

23:11 PM, 1st December 2021, About 2 years ago

Reply to the comment left by Fakhar Aziz at 01/12/2021 - 18:03
Try contacting the Leasehold Knowledge partnership.
Also join the National Leasehold campaign on FB.

Sally Mills

23:14 PM, 1st December 2021, About 2 years ago

Reply to the comment left by andrew samuel at 11/07/2021 - 14:41
National Leasehold Campaign are on FB
Also google Katie Kendrick ( founder of the group)

There is also the Leasehold Knowledge partnership headed by Mr Sebastian Kelly.
These people can guide you and offer possible solutions to any Leasehold issue.

Tim Rogers

10:30 AM, 2nd December 2021, About 2 years ago

I was wondering if anyone more legally clever than I could comment / clarify something?

I recently attended an auction with a friend. A property came up, ( not anything my friend was interested in), which triggered something I had never encountered before.

Immediately after the property was announced, one of those attending stood up and asked the auctioneer to confirm the freehold status. He made it clear that he believed this would be legally binding on the auction house should it prove otherwise after the sale.

Is this correct, or a wishful hope?

Ian Narbeth

10:59 AM, 2nd December 2021, About 2 years ago

Reply to the comment left by Tim Rogers at 02/12/2021 - 10:30Tim
If the Auctioneer said in the room that the property was freehold when it was not there might be a claim for negligent mis-statement and there would be reputational damage. What sometimes happens at auctions is that people who want to buy a property stand up and make disparaging remarks about the property with a view to putting off potential bidders. Experienced auctioneers are alive to this and may well not respond directly but simply refer bidders to the catalogue and special conditions.
A claim for negligent mis-statement is not straightforward and would turn on its facts. One issue will be "Did the winning bidder rely on the mis-statement?" Auctions are not for the inexperienced. As I have said previously on this thread - Caveat Emptor. Let the Buyer Beware.

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