Claudia
22-02-2008, 18:23 PM
I am an assured shorthold tenant (of 10 years) in a top flat of a house converted into 2 flats. I have 2 landlords who I am informed are in property business together. 1, (who I have never met), owns the Freehold of the whole building, call him Mr Freeholder. The other,(who I have always dealt with), owns the 999 year Leasehold of the ground floor flat, Call him Mr Leaseholder.
Mr Leaseholder told me that Mr Freeholder is going bankrupt. I have verified this at the land registry and there is indeed a bankruptcy order notice that a bankruptcy is pending on the Proprietorship register for the freehold.
Mr Leaseholder has now asked me to move into the flat downstairs. Mr Leaseholder was planning to sell his lease on that flat but presumably he can't sell it now with the bankruptcy charge on the freehold? In any case he is VERY KEEN for me to move downstairs ASAP.
My concern is that Mr Leaseholder's lease could be threatened by Mr Freeholder's bankruptcy as there are mortgages on the freehold. Mr Leaseholder claims that there is nothing to worry about and says the flat is his. But what if the bank's repossess, can they still reclaim the flat below even though there is a long lease on it? (I don't want to go through all the hassle and expense of moving downstairs to find out I still end up getting kicked out of there anyway - would be better to just move once).
Mr Leaseholder told me that he had thought he owned the top flat and bottom flat jointly and has only just found out he only has the lease on the bottom flat! (But I have been making my rent cheques out to Mr Leaseholder for 10 years?). For this reason I don't have much confidence in just taking Mr Leaseholder's word for it that there is nothing to worry about if I move downstairs.
Hope someone can advise.
Many thanks.
Mr Leaseholder told me that Mr Freeholder is going bankrupt. I have verified this at the land registry and there is indeed a bankruptcy order notice that a bankruptcy is pending on the Proprietorship register for the freehold.
Mr Leaseholder has now asked me to move into the flat downstairs. Mr Leaseholder was planning to sell his lease on that flat but presumably he can't sell it now with the bankruptcy charge on the freehold? In any case he is VERY KEEN for me to move downstairs ASAP.
My concern is that Mr Leaseholder's lease could be threatened by Mr Freeholder's bankruptcy as there are mortgages on the freehold. Mr Leaseholder claims that there is nothing to worry about and says the flat is his. But what if the bank's repossess, can they still reclaim the flat below even though there is a long lease on it? (I don't want to go through all the hassle and expense of moving downstairs to find out I still end up getting kicked out of there anyway - would be better to just move once).
Mr Leaseholder told me that he had thought he owned the top flat and bottom flat jointly and has only just found out he only has the lease on the bottom flat! (But I have been making my rent cheques out to Mr Leaseholder for 10 years?). For this reason I don't have much confidence in just taking Mr Leaseholder's word for it that there is nothing to worry about if I move downstairs.
Hope someone can advise.
Many thanks.