Surrender and regrant of leases is it legal?

Surrender and regrant of leases is it legal?

9:59 AM, 12th February 2024, About 3 weeks ago 3

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Hello, I am in the middle of protracted litigation with my Residents Management Company. I have discovered lease assets such as garages have been sold between leaseholders on the estate in contravention of an Absolute prohibited Covenant.

The covenant says ‘Not any time to assign transfer sublet charge or part with possession or occupation of part only of the demised premises or to permit or suffer the same to be done.

The garages are clearly part of the demise of the flats as per the lease. In the past Deeds of variation and Licences have been issued by previous Boards approving the sale and purchase splitting the demise. Garages have also been sold under the radar of the Board and managing agents.

When the Board has found out it does nothing. Suffice to say there appears to be a large number of sales which have led to the service charge apportionments for individual flats [to which the garages form part of in deciding the apportionment] not being corrected or altered.

It now appears that to circumvent the lease covenants, the leases of the respective purchaser and seller have been surrendered and regranted to transfer the garage clearly with Board complicity. I understand that this may be a loophole bypassing the lease but it is legal?

The garages can now be found at Land Registry under a separate lease title. To me, it is like running a coach and horses through the lease with total disregard for any covenants when it suits the Board. This has led to what I believe to be serious financial mismanagement in respective of the Service charge apportionments, For example, some leases still show a garage on the lease with the relevant apportionment yet the garage was sold years before.

I am interested to hear from anyone who has experienced this?



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11:32 AM, 12th February 2024, About 3 weeks ago

Is the RMC a registered limited company with registered number holding the freehold reversion interest and you own a registered £1 share in the company?
If so what do the Memorandum & Articles state are your voting rights? As paid up shareholder you have legal rights under companies act 2006 to ensure legal obligations under the M&A are complied with. Directors hold a fiduciary to the company which is a ‘person’ in its own right.
Is there a Deed of Trust to your Lease?
Is your registered title to your lease with Absolute guarantee? (Good against the world).
If directors are not fulfilling their fiduciary and you own a share of the freehold then you have a legal duty to take action for mismanagement otherwise there’s a risk of company strike off and the leases become worthless.


12:34 PM, 12th February 2024, About 3 weeks ago

The Corporate Transparency Act is now in force.


9:01 AM, 20th February 2024, About A week ago

Reply to the comment left by Kizzie at 12/02/2024 - 11:32
Hi Kizzie
Thanks for your response. No there is no dead of trust involved but I will look into the mems and arts to see what is there I can use

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