Joint freehold rev. purchase by two lessees- dispute

[m1960]

Can anyone help?

My neighbour and I are in process of extending our leases. She hold the entire freehold for the building [ 2 flats in total]. I am in process of purchasing my 50% of the freehold. The joint freehold papers have still to be registered with the land registry.

But my neighbour's solicitor has sent the paperwork for extending the years of her lease and the extent of her property has been altered from the original. Her lawyer says that as she owns the freehold she has the right to change aspects of it as long as it doesnt encroach into my space.

But I am not sure if this is correct and if my lease should be changed to reflect such alterations to hers.

Also as I have already my lawyer for my lease extension conveyance etc, who should be paying if my lease needs to be altered again? And should she be paying any compensation to me for these alterations?

thanks to anyone who should help.

[jeffrey]

If you two are supposed to be jointly owning f/r, and as you're paying her for equal stake, your stakes should thereafter be equal too- so, no, she should not be changing aspects to suit her greedy self.

[m1960]

1/ We agreed an amount for 50% purchase of the freehold, and our lease durations were to be extended by equal years. My lease was extended, but apparently as both freeholder & leaseholder she cant extend her lease until the freehold is transferred into joint names.

2/I understood the leases would be extended on identical terms, but the redrafted lease had changed the wording description of her property, and the map plan was altered.

3/As was already told that I couldnt stop her, because she is my landlord, and that these changes didnt really encroach on me. I havent argued too much as was panicking that she might be able to pull out of the agreed deal and I would lose out on the joint freehold.

3/Not sure if its justified to have objection? it doesnt really affect my space, other than allowing her to keep a section of hallway ?[ already enclosed by her internal access door] And I guess she could do a loft development if she wanted? Also her lawyer agreed to include a more specifc clause about floor covering to deaden overhead noise in her new lease.

But just not sure if I can now legally say " hang on a second...happy to extend the duration of your lease but not sure the rest is in order!''

Am I in a position to negotiate?

Advice welcomed.

[jeffrey]

Either they're identical or they're not. If she wants lease granting by you + her as joint freeholders, make her toe the line.

[m1960]

Thank you for the advice Jeffrey.

But not quite sure I understand?

a/Does "toe the line" mean I can refuse to allow her, my freeholder, to alter the description in her new lease of her property boundaries, think the correct term is "demise'?

b/ And if I do have this negotiating power, what kind of monetary compensation, if any, is she obliged to give to cover my costs and the added value to her flat of this enhanced description of her "demise' ?

[jeffrey]

Thank you for the advice Jeffrey.

But not quite sure I understand?

a/Does "toe the line" mean I can refuse to allow her, my freeholder, to alter the description in her new lease of her property boundaries, think the correct term is "demise'?

b/ And if I do have this negotiating power, what kind of monetary compensation, if any, is she obliged to give to cover my costs and the added value to her flat of this enhanced description of her "demise' ?
She cannot simply demand some enhancement of her lease just because she is the (current) sole freehold reversioner. Each lease ought be the same once you've paid your 50% and obtained Transfer of f/r into point names. The payment for her enhancement is a valuation matter-ask your surveyor.

[m1960]

Delighted to see you are spending your wet, windy Sunday afternoon advising such misguided as myself!

a/ re; compensation issue/ understood should consult a surveyor on this point.

b/ re; Each lease ought be the same ? Do you mean that the leases ought not change from the originals, other than extending their time duration? And anything beyond this has to be negotiated?

My neighbour seems to be taking this opportunity to tidy up her lease, so that there will be no future problems about hallways and lofts etc if she ever sells.
Meanwhile I was being given misleading advice. Even the legal conveyance person who dealt with my lease extension suggested the there was nothing I could do to stop my landlord " demising these spaces to her flat". My impression has been, all along, that as sole freeholder she calls the shots and I have no choice but to comply.

[jeffrey]

Neighbour is grabbing whatever she can before you get your 50%. Why should she? "Tidy up" is a euphemism for "appropriate by subterfuge"!

[m1960]

Thanks Jeffrey.

So the bloody [apologies for cursing] info given by my conveyance people re she having right to " demise " the various bits to her flat, under the guise of "tidy up' of leases, was tantamount to Hitler's invasion of Poland being a bit of a "tidy up' of national boundaries!

It just shows, you get the advice you pay for, and wouldn't mind so much, but have paid alot thus far, and just took what I was being told as gospel.

The freehold is in process of being registered in joint names, apparently waiting for some inland revenue cert before processing it.

Would you suggest I protest vigorously at this point, or wait until it is actually registered in the joint names? Or does it make any difference?

[jeffrey]

1. The delay is probably due to HMRC's need to process/issue form SDLT5, required for HMLR application.
2. The problem which you confront is not the f/r itself but, rather, what your neighbour wants adding to her flat's extent.
3. Protest now before the leases are granted- after which it'll be too late- as they have to await f/r registration first anyway.

[m1960]

Thanks again Jeffrey.

A point I need to query though, sorry for being no legal eagle in my understanding of all this :-

a/ Does my neighbour [ still presently 100% freeholder] legally have to have my agreement in order to adjust the description of her property's demise for her new extended duration lease?

I already have my lease extension, which has been already registered. Once the joint freehold title is registered, can she "automatically" get her lease extension with ammendments, without my agreement and signature?

[jeffrey]

Thanks again Jeffrey.

A point I need to query though, sorry for being no legal eagle in my understanding of all this :-

a/ Does my neighbour [ still presently 100% freeholder] legally have to have my agreement in order to adjust the description of her property's demise for her new extended duration lease?

I already have my lease extension, which has been already registered. Once the joint freehold title is registered, can she "automatically" get her lease extension with ammendments, without my agreement and signature?
No. A lease can only be granted by whoever is freeholder. Once f/r is registered in joint names:
a. BOTH of you will be the freeholders; and
b. BOTH of you would grant her new lease. She cannot grant it to herself.

[m1960]

So to recap:-

a/ As both freeholder and leaseholder my neighbour cannot presently grant herself a new lease

b/Once freehold registered into joint names, we jointly grant her new extended lease

c/ And she does not have any unequivocal right as freeholder, either now [as sole freeholder] or later when joint, to unequivocally expect to be able to alter her demise description to her advantage?

- And I am within my rights to suggest that if she wants these added advantages, she will need to negotiate them with me? And I can request some monetary compensation in return for my agreement to these changes?

[jeffrey]

So to recap:-

a/ As both freeholder and leaseholder my neighbour cannot presently grant herself a new lease

b/Once freehold registered into joint names, we jointly grant her new extended lease

c/ And she does not have any unequivocal right as freeholder, either now [as sole freeholder] or later when joint, to unequivocally expect to be able to alter her demise description to her advantage?

- And I am within my rights to suggest that if she wants these added advantages, she will need to negotiate them with me? And I can request some monetary compensation in return for my agreement to these changes?
Yes to all your questions.

[m1960]

thank you so much for all your help Jeffrey.

Feel much better to have correct facts. Had been misinformed by people doing conveyance of my lease extension, who said that my freeholder could basically alter her demise as she wished. And my response so far been based on that misinformation!