Vincent Wraight

Registered with Property118.com
Friday 12th December 2014


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Total Number of Property118 Comments: 1

Vincent Wraight

18:30 PM, 21st February 2015
About 5 years ago

Problems with Legal Property Title

Thank you to all respondents for the helpful info. The problem with this property is also that the freeholder was the original developer (deveiopment of 8 houses built in 2006/7) and the company went into liquidation in 2008. There is no current freeholder/managementt company. The house was repossesed in 2013 and 2 subsequent sales fell through because it was not possible to obtain a Mortgage because of lack of Freeholder. There was a mortgage (and still is ) on the property. The current leaseholder has walked away. The liquidator has legal power to sell on behalf of the bank.

I am a cash buyer so a mortgage not an issue however on resale the title would need to be good to maximise sale value. My solicitor has advised me that having reviewed the legal pack she can confirm that title would be good, She further advised that after owning the property for 3 years I can apply to the appropriate treasury department to purchase the frehold (approx cost £2000).

The only charges for the lease are £150 per annum ground rent so my liability as a maximum should be £900 for 6 years, if it has not been paid.

On the financials the proerty has a guide of approx half its full value with a probable rental yield of at least 12% gross.

I have managed to scource an indeminity policy to cover title, lack of searches and chancel repair liability so hopefully all should br good. My solicitor is only now concerned about the lack of searches and she is going to review the proposed indemnity policy to ensure it provides adequate cover. If it does all should be OK to proceed.

As a final comment I can say that my solicitor (recently engaged by me for another BTL which fell through) has been absolutely superb managing to arrange the previous BTL purchase to exchange and complete on the same day after only three weeks. We unfortunatley had to pull out on the day of exchange/ completion after we discovered that there was a serious problem with drugs/vandal/youths on the doorstep of the property . Additionally despite carrying out a significant amount of work she only charged me the cost of the searches, all in all I am very impressed with the service provided.

Any further thoughts/ comments would be much appreciated.... Read More