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rhogan
18-04-2008, 00:03 AM
Am buying a flat on a 66 year lease (conversion 5/6 flats in suitu) and looked have looked into possibility of lease extension at exchange
Due to the freehold being under escheat law and owned by the crown estate, by default the lease cannot be extended, and the only option the crown's solictors give is for the freehold title to be transferred for a nominal sum to a newly formed freehold company with 2 or more leasees, on the assumption everyone has reasonable opportunity to join via consultation. Now this part is fine and straightforward.
The complex part is there's a charge on the freehold title, and transfer from the crown still has the problem of lease extension and possibly of the ex freeholder chasing through court for lent charge monies+interest over say 20 years, on investigation of the freehold title and checking info on companieshouse website shows the freehold title to have been transferred over to the crown about 14 year back due to the original freehold company being wound up.
There is still a charge on the freehold title in the name of a privately owned individual - who on further investigation was the original company director who I suspect lent monies to his company and securitised this again the freehold title in question.
I've tracked this original freeholder down, he's a stubborn old lad who keeps telling me it will cost 30K to remove this charge, he'll seems to have past grieviences with old leasees as well which don't help, and can'tseem to understand a reasonable offer when offered one. Was going to check LR for original mortgage deed, but probably pointless assuming this chap's stance.
Now failing all reasonable attempts to workout a solution with this ex freeholder, is there any other way to get this charge removed..??

Is bugging me as it would be a rather good buy if I could work this charge against title, either through the courts or waiting for this guy to pop his clogs, but knowing my luck that would make the suituation even more complex.

Any ideas on charge removal given the circumstances.

Thanks
Rob

jeffrey
18-04-2008, 00:25 AM
Not sure, but I rather thought that escheat (boan vacantia) vesting terminates (= destroys) the freehold and all charges secured on it: a bit like lessor's forfeiture of lease terminating (= destroying) it and all charges secured on it. Has Treasury Solicitor actually told you that charge survives legally, despite freehold termination?

rhogan
18-04-2008, 00:41 AM
Yes, and told me to try and work out something with this exFreeholder, but I suspect thats a stock standard reply. Might need to reapproach some other way,as does such a charge still standup against a dissolved company - and in theory for how many years after, and if the lender doesn't chase his dissolved company for interest - which we know to be true, does this null and void the lending agreement.?
I guess am trying to sort out this mess before exchange, and can walk away at any point knowing I tried, might be worth discussing with corporate litagation chap as my current solicitor seems limited in options.
Could buy and try and sort there after, but when down to 60 year and below in escheat law crown - consider marriage value to start increasing quickly - similar to normal 80 year and below leases..

jeffrey
18-04-2008, 01:05 AM
But if there's now no freehold, there's no estate against which the charge stands secured!