Have I been scammed into Leasehold?

Have I been scammed into Leasehold?

9:30 AM, 9th July 2021, About 3 years ago 69

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I have just purchased a house from an auction and the legal pack said the house was Freehold, even Land Registry right now says the house is Freehold

However, only one day before the auction, the auctioneers put a document in the legal pack saying it has a 999 years Leasehold.

How can I solve this issue?

What are my rights at Auction, and have I been scammed?

Thank you for any assistance

Andrew


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Gracie

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14:15 PM, 9th July 2021, About 3 years ago

You haven't been scammed, you just didn't do due diligence right up until the day before. That is what is required, and that is something that should change with auctions. It's unfortunate but not a scam. The law allows it. Petition for change.

Ian Narbeth

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14:32 PM, 9th July 2021, About 3 years ago

Andrew, I am a property solicitor. Expect to pay £5000 -10,000 with much less than 100% chance of success and to pay a similar sum for the other side's costs if you lose. Mu advice is cut your losses and don't throw good money at this.
Gracie may be right. Hers is the obvious defence and a complete defence if it succeeds.

Tim Rogers

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14:39 PM, 9th July 2021, About 3 years ago

Regardless, it may be worth writing to "Homes Under The Hammer" as a cautionary tale. Even if it isn't technically a scam it's, certainly sharp practise that folks should be made aware of on a broad basis. The more times a property fails to sell because folks spot this scenario the less likely it will occur.

Then there is the option of pinning the auctioniers who could be considered morally bankrupt to allow such things.

Ian, out of interest, if it could be proved that the auctioneer didn't highlight the change prior to starting the auction, would that make a difference in law?

Ian Narbeth

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14:46 PM, 9th July 2021, About 3 years ago

Reply to the comment left by Tim Rogers at 09/07/2021 - 14:39
Tim
"out of interest, if it could be proved that the auctioneer didn't highlight the change prior to starting the auction, would that make a difference in law?"
Short answer, possibly but the Auctioneers Terms and Conditions will always exclude liability and throw onto the bidder the duty of checking. It will not be straightforward and as I said above disproportionately costly to litigate. If the auctioneer had described it as "freehold" in the room then there might be a claim.
Unfortunately for Andrew, the special conditions were amended the day before. Caveat Emptor!

andrew samuel

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14:51 PM, 9th July 2021, About 3 years ago

hope everyone can read this, so no one will face it and i can be happy for the people that dont get in to these sittuations by reading it

Gracie

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14:53 PM, 9th July 2021, About 3 years ago

Reply to the comment left by Tim Rogers at 09/07/2021 - 14:39
Absolutely, Auctions do need changes. Just as leasehold does, and that's how we're making it happen - painfully slowly - but by highlighting it as unfair, too many loopholes, too open to interpretation, unfit for modern use..

andrew samuel

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14:53 PM, 9th July 2021, About 3 years ago

Reply to the comment left by Ian Narbeth at 09/07/2021 - 14:46
Ian, the legal packs does show it as freehold, the fist document does.
though the day before added documents dont under the name of auction contract

Gracie

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14:56 PM, 9th July 2021, About 3 years ago

Any idea if it was one of the auctions that was covered by a TV production team? If he was supposed to mention it being leasehold before bidding, and you have prove that he didn't, maybe you'd have a chance despite the day before paperwork not being read. A small chance & very long shot. Very very very long shot :-/

Ian Narbeth

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15:02 PM, 9th July 2021, About 3 years ago

Reply to the comment left by andrew samuel at 09/07/2021 - 14:53Hi Andrew, that is all well and good but as I said the case is not straightforward. A lawyer would need to look into the facts carefully. If you really want to litigate I have colleagues who can help but I cannot see that it will be worth it given the low value of the property. You will be tied up for months or years in the dispute and your opponent will be your landlord so may harass you for things under the lease. On a sale or re-mortgage you will have to disclose any "dispute". Trust me, you will be on a hiding to nothing.
Cut your losses and sell it at auction.

andrew samuel

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15:14 PM, 9th July 2021, About 3 years ago

Reply to the comment left by Ian Narbeth at 09/07/2021 - 15:02
thank you, good looking out..

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