smcrelocate   0 #1 Posted April 23, 2019 have been told that a flat has no freeholder available and that one of the owners of one of the flats manages the building with indemnity insurance in place. apparently its common. could anyone explain this and whether its a good thing and what to look out for. thanks Share this post Link to post Share on other sites Share this content via...
lil-minx92   10 #2 Posted April 23, 2019 1 hour ago, smcrelocate said: have been told that a flat has no freeholder available and that one of the owners of one of the flats manages the building with indemnity insurance in place. apparently its common. could anyone explain this and whether its a good thing and what to look out for. thanks Flats are always leasehold (almost always if we're being pedantic- but never freehold). Common parts of the building have to be collectively managed and maintained (roof, car park, gardens, hallways, the general structure etc). Usually a management company in which each flat owner has a share is set up, but an external management company will be paid a fee to do the actual management. All the flat owners pay an annual service charge to cover expenses, buildings insurance and maintenance costs. This will vary from development to development, from a few hundred pounds upwards. There's pro's and cons (too many to go into) but it generally works, and if you want a flat you cant avoid the arrangement anyway! Share this post Link to post Share on other sites Share this content via...
smcrelocate   0 #3 Posted April 23, 2019 thanks, in this case though there is no management company and the freehold isn't known Share this post Link to post Share on other sites Share this content via...
lil-minx92   10 #4 Posted April 23, 2019 Hmmm that sounds like a particularly dodgy situation. If there is no known freehold how could one grant a leasehold interest out of it (or at least a valid long leasehold that could be registered). Id want proper legal advice.  Also, what happens when the flat owner that deals with the management dies or sells up? And who checks they are doing the job competently? Be worth checking you could get a mortgage on that Share this post Link to post Share on other sites Share this content via...
smcrelocate   0 #5 Posted April 23, 2019 thank you!! it does sound weird huh!! I'm assuming whoever buys it becomes the new flat owner. Share this post Link to post Share on other sites Share this content via...
topflat29   10 #6 Posted April 24, 2019 it sometimes happen to a house converted into 2 flats which are sold on and left the leaseholders to sort themselves out.  The original freeholder has gone abroad  to retire in Spain or to some other warmer climate country. Share this post Link to post Share on other sites Share this content via...
smcrelocate   0 #7 Posted April 24, 2019 thank you! doesn't sound great... Share this post Link to post Share on other sites Share this content via...
horribleblob   202 #8 Posted April 24, 2019 It sounds like a Good Leasehold title as opposed to an Absolute Leasehold title. Does this link help:  https://www.homesandproperty.co.uk/property-news/legal-qa/what-is-the-difference-between-a-good-and-an-absolute-leasehold-title-a123756.html Share this post Link to post Share on other sites Share this content via...
smcrelocate   0 #9 Posted April 24, 2019 ahh that sounds about right. thank you Share this post Link to post Share on other sites Share this content via...
Jeffrey Shaw   83 #10 Posted May 2, 2019 On 23/04/2019 at 16:02, lil-minx92 said: Hmmm that sounds like a particularly dodgy situation. If there is no known freehold how could one grant a leasehold interest out of it (or at least a valid long leasehold that could be registered). Id want proper legal advice.  Also, what happens when the flat owner that deals with the management dies or sells up? And who checks they are doing the job competently? Be worth checking you could get a mortgage on that 1. Have you verified the position at HMLR? Look at the freehold title for £3 via https://eservices.landregistry.gov.uk/eservices/FindAProperty/view/QuickEnquiryInit.do 2. Even if the freehold reversion is unregistered or if its registered proprietor is missing, I'd strongly recommend collective enfranchisement (RTE). See http://www.legislation.gov.uk/ukpga/1993/28/part/I/chapter/I and particularly s.26 [Where L cannot be found]. 3.Alternatively, consider Right To Mange (RTM). See http://www.legislation.gov.uk/ukpga/2002/15/part/2/chapter/1 and particularly s.85 [Where L cannot be found]  Share this post Link to post Share on other sites Share this content via...