Compton Group - Buying freehold

[Jeffrey Shaw 90]

Thanks - but what sort of risks are there associated with buying out their interest?

None in buying them out. But in using their solicitors: lots!

Such companies often seek to impose a host of new covenants; your solicitor should negotiate these away.

[Dave h-j 10]

Ok. Their offer stands until the end of Jan, so I have plenty of time to find/save up for a solicitor.

[Litotes 63]

Sorry to resurrect this one - but if you are buying the freehold from someone else, then surely that is the end of it and they can't include any new convenants as they have no interest in the land after they have sold you the freehold?

Or am I wrong?

[Jeffrey Shaw 90]

On 28/06/2019 at 17:29, Litotes said:

Sorry to resurrect this one - but if you are buying the freehold from someone else, then surely that is the end of it and they can't include any new convenants as they have no interest in the land after they have sold you the freehold?

Or am I wrong?

You're mostly correct, BUT:

a. the vendor can demand an indemnity covenant if the freehold is already subject to covenants; and

b. the vendor might seek to add new freehold covenants. These should be resisted unless the vendor owns any undeveloped land adjacent and wants the covenants in order o protect its value.  See s.10(3)-(5) of the Leasehold Reform Act 1967: http://www.legislation.gov.uk/ukpga/1967/88/section/10

[Sheila robinson 0]

Hi I have bought the freehold from Compton  Group in 2018 using their solicitors. I thought everything was ok until now as I am in the process of selling my house. My solicitor has found there is a query with a Head Lease on my property. Apparently there are 3 parts to this and I had one title and they are supposed to be looking into the other parts. I wish I had used my own  solicitor now as this is dragging on. Am still waiting. 

Edited October 28, 2020 by Sheila robinson
Spelling mistakes

[topflat29 10]

Sheila, 

Make a  written complaint against the solicitor to the  SRA ( Solicitors Regulation Authority ).  

[Sheila robinson 0]

Thank you 

[Jeffrey Shaw 90]

On 28/10/2020 at 17:16, Sheila robinson said:

Hi I have bought the freehold from Compton  Group in 2018 using their solicitors. I thought everything was ok until now as I am in the process of selling my house. My solicitor has found there is a query with a Head Lease on my property. Apparently there are 3 parts to this and I had one title and they are supposed to be looking into the other parts. I wish I had used my own  solicitor now as this is dragging on. Am still waiting. 

(See my bold type above)

Yes; a good reason not to use the services of an investor freehold reversioner's solicitors.

I suspect that the 'three parts' bit is the crux. Perhaps:

a. CG owned the freehold reversion;

b. another party ('X') owned the leasehold reversion;

c. you owned an underleasehold; and

d. you might have bought only the f/r.