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vacant freeholder advice

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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

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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!

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thanks, in this case though there is no management company and the freehold isn't known

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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

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thank you!! it does sound weird huh!! I'm assuming whoever buys it becomes the new flat owner. 

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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.

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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

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ahh that sounds about right. thank you 

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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]

 

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