Association of freeholders, breach of trust?

[Annanda]

I live in a house converted into 4 flats. We bought the freehold in 1991 and formed an association of freeholders and signed a deed of covenant rather than form a company, as it seemed simpler and cheaper.
The basement flat wants to sell and the buyer wants some variations to the lease. However the owners of ground floor flat are refusing to comply and, because of the way we hold the freehold, all freeholders have to sign. They do not seem to have a valid reason and are now not communicating with us at all. They are effectively blocking the sale of the flat, as well as preventing all of us from getting our leases updated and extended.
I want to try again to persuade them with a 'carrot and stick' - upgrading our leases and the value of our flats versus possible legal action but I need to know if legal action is feasible.
We can apparently get some of the variations (to do with access, repair and maintenance) enforced under section 35 of the Landlord and Tenant Act but not the one allowing for changes to the internal plan of the flat.
The only other possibility I have heard of is that they may be in breach of trust and legal action could perhaps be taken on that basis, but I cannot find out how possible that is.
Can anyone advise please?
Thanks.

[Gordon999]

1. You can get free advice on leasehold problems from LEASE ( www.lease-advice.org )

2. Send your problem to your local MP to ask the Housing Minister to offer a solution. We have had 9 Housing Ministers since 1997 and none have solved any of the many Leasehold problems.

3. If the leaseholders are all bound by a covenant to sign for any sale transfer of a flat in the building, the vendor should ask the conveyancing solicitor to serve a warning notice that if the sale fails to proceed for lack of co-operation , the vendor may have to enter a claim for compensation in the County Court .

[sgclacy]

I live in a house converted into 4 flats. We bought the freehold in 1991 and formed an association of freeholders and signed a deed of covenant rather than form a company, as it seemed simpler and cheaper.
The basement flat wants to sell and the buyer wants some variations to the lease. However the owners of ground floor flat are refusing to comply and, because of the way we hold the freehold, all freeholders have to sign. They do not seem to have a valid reason and are now not communicating with us at all. They are effectively blocking the sale of the flat, as well as preventing all of us from getting our leases updated and extended.
I want to try again to persuade them with a 'carrot and stick' - upgrading our leases and the value of our flats versus possible legal action but I need to know if legal action is feasible.
We can apparently get some of the variations (to do with access, repair and maintenance) enforced under section 35 of the Landlord and Tenant Act but not the one allowing for changes to the internal plan of the flat.
The only other possibility I have heard of is that they may be in breach of trust and legal action could perhaps be taken on that basis, but I cannot find out how possible that is.
Can anyone advise please?
Thanks.

Why don't the 3 of the 4 lessees compulsory purchase the freehold from the four of you. Applying to the court if necessary to get a vesting order should the akward lessee refuse to communicate

The fear of being excluded may bring them to the table - serve a section 13 Notice (which you can do yourself, making sure the figure proposed is reasonable

[jeffrey]

Even so, varying one lease might be impossible. Is there a covenant by the original lessor that all leases would be alike?

[Annanda]

That sounds extraordinary. I'm not sure I have understood correctly. Can three of us really serve a compulsory purchase order on the 4th?

I presume we would have to have grounds for doing so, which would need to be investigated and proven? We could do this but it would take time and cause quite a war.

[Annanda]

Even so, varying one lease might be impossible. Is there a covenant by the original lessor that all leases would be alike?

The original leases are all pretty much alike apart from the fact that the basement flat has a garden and different front entrance. As I understand it that fact that we have an association of freeholders means that all 4 owners have to sign a deed of variation and so far I've found no way to legally enforce the compliance of those who refuse.

[sgclacy]

That sounds extraordinary. I'm not sure I have understood correctly. Can three of us really serve a compulsory purchase order on the 4th?

I presume we would have to have grounds for doing so, which would need to be investigated and proven? We could do this but it would take time and cause quite a war.

The purchase notice by the three of you is served on all four of you.

You do not need to have grounds for wishing to compulsory purchase. I suspect it will cause a war but this may then get your akward party to become more reasonable and you can then suggest you will withdraw the notice if they sign the deeds

[Annanda]

Wow, a touch of blackmail! It might work as a last resort. Can you please tell me how to do this or where to find out how to do it?
And thanks

[sgclacy]

Wow, a touch of blackmail! It might work as a last resort. Can you please tell me how to do this or where to find out how to do it?
And thanks


No its not blackmail, you are not asking for anymore than their co-operation, I would see it as imposing sanctions in order to get compliance with what was earlier agreed

Quite simple, you need to serve a Section 13 Notice on the four of you by the three of you.

The Section 13 Notice needs to specify a purchase price and it is important that the figure is reasonable. The notice can be served by yourselves; at this stage (as it will hopefully get a dialogue going) you might not want to use the service of a solicitor. I would state when serving the notice that you have been advised to, in effect, disenfranchise him/her as a result of their non cooperation in dealing with deeds of consent and extension. This may alarm them and hopefully they may then start to co-operate

Send me a personal message with your e-mail address and I will send you a Section 13 Notice

If you dont know the value of the freehold, send me the details of teh term, ground rent and value of teh flats and I will calculate a figure for you to put on the notice

[jeffrey]

That sounds extraordinary. I'm not sure I have understood correctly. Can three of us really serve a compulsory purchase order on the 4th?

I presume we would have to have grounds for doing so, which would need to be investigated and proven? We could do this but it would take time and cause quite a war.
It's not really a Compulsory Purchase. Only public/local authorities make those. What it is is a collective enfranchisement.