76 years but freeholder dissappered

[arvina]

hi

i thinking of purchasing a 2 bed flat conversion in leyton/stratford in london for 200k , seller is paying 5 % deposit and stamp duty...it was also going to come with brand new lease, but they cannot locate the freeholder and this sellar brought this from auction.

so now i only have 76 years, my solictor says if the freeholder doent show in 6 years time then i become the freeholder....


question: if he comes back, how mch would it be to renew lease?

if he doenst come back how easy is it to become the freeholder....

[jeffrey]

1. (2nd para.) No- you do NOT "become the freeholder".
2. You have a legal right to extend (not "renew") lease by adding 90 yrs.- but only once you have owned for 2 yrs. If your V has owned for >2yrs, make V serve appropriate Notice (s.42 of Leasehold Reform Housing and Urban Development Act 1993) which V must assign to you when you complete purchase of existing leasehold.
3. Problem: on whom to serve that Notice? Answer: see s.50 of Act- apply to Court for Vesting Order.

[Richard Webster]

1. (2nd para.) No- you do NOT "become the freeholder".
2. You have a legal right to extend (not "renew") lease by adding 90 yrs.- but only once you have owned for 2 yrs. If your V has owned for >2yrs, make V serve appropriate Notice (s.42 of Leasehold Reform Housing and Urban Development Act 1993) which V must assign to you when you complete purchase of existing leasehold.
3. Problem: on whom to serve that Notice? Answer: see s.50 of Act- apply to Court for Vesting Order.

A lot of hassle to go to court etc - why bother? You will have difficulties selling, so why buy? Let seller stew in his own juice and someone else can have the problem.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.

[jeffrey]

A lot of hassle to go to court etc - why bother? You will have difficulties selling, so why buy? Let seller stew in his own juice and someone else can have the problem.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.

If Arvina wants the flat, however, we have to find a constructive way forwards. Certainly the shortish unexpired term and the unknownness of the freeholder ought to be reflected in a price reduction if Arvina buys into the problem.

[arvina]

Hi thanks for your feedback.

So has my solicotor advised me incorrectlz as she says that if the owner doesnt show up in 6 years thn i have the freehold...


if he does show up how much would a lease cost to extend approx what formula do they use......

[jeffrey]

On the face of it, your solicitor is wrong. Why not show her my posts and ask her again?

[arvina]

i will, can i move my case and pay you