Reverend_Black
14-06-2007, 09:47 AM
I appreciate that there is plenty of posts regarding extensions. I hope this has not already been covered, and sorry for the long post...
Basically I agree to purchase a flat for 172k with 66 year lease with the sellers issuing a section 42 (notice to extend lease) and assigning the benefit to me. The section 42 offered 9k for a 99 year extension. The freeholder’s solicitor replied with a letter asking for a deposit of 900 pounds and a copy of the title, the deposit was paid. The freeholders’ solicitor then issued a counter notice offering the extension for 12k but adding “...pursuant to section 45 of the act without prejudice that there may have been a deemed withdrawal of the notice.”
After advice I accepted the offer of 12k. It was at this point that the freeholder’s solicitor began disputing the validity of the assignment of notice and raised the price to 16K. So basically they seem to have withdrawn the offer of 12k, which I had agreed to, on the basis that the assignment was not handled correctly. My solicitors are adamant that they have (although they do not inspire confidence, I doubt they familiar with lease extensions). I think that 16k is too much to pay, so it seems this is heading to the LVT.
Has anyone experienced this before? Is the freeholder allowed to withdraw an offer? I assume the crux of the matter is whether or not the assignment was handled correctly. If my solicitor did make a mistake what sort of case will I have against them, especially seeing it will cost me a lot of money!
Many thanks
P
Basically I agree to purchase a flat for 172k with 66 year lease with the sellers issuing a section 42 (notice to extend lease) and assigning the benefit to me. The section 42 offered 9k for a 99 year extension. The freeholder’s solicitor replied with a letter asking for a deposit of 900 pounds and a copy of the title, the deposit was paid. The freeholders’ solicitor then issued a counter notice offering the extension for 12k but adding “...pursuant to section 45 of the act without prejudice that there may have been a deemed withdrawal of the notice.”
After advice I accepted the offer of 12k. It was at this point that the freeholder’s solicitor began disputing the validity of the assignment of notice and raised the price to 16K. So basically they seem to have withdrawn the offer of 12k, which I had agreed to, on the basis that the assignment was not handled correctly. My solicitors are adamant that they have (although they do not inspire confidence, I doubt they familiar with lease extensions). I think that 16k is too much to pay, so it seems this is heading to the LVT.
Has anyone experienced this before? Is the freeholder allowed to withdraw an offer? I assume the crux of the matter is whether or not the assignment was handled correctly. If my solicitor did make a mistake what sort of case will I have against them, especially seeing it will cost me a lot of money!
Many thanks
P