What can we do about a lease dispute after the leaseholder passed away?

What can we do about a lease dispute after the leaseholder passed away?

0:01 AM, 11th February 2025, About 15 hours ago 2

Text Size

Hi, my partner and I purchased a property in August 2024, it came with a freehold of the maisonette which is part of the same building. The maisonette will have been unoccupied for 8 years by March 2025, after the previous occupant passed away.

Last week we had a company break into the property without any legal documents to show that had a right to do so and changed the locks. They then told me partner they were taking ownership of the property and it would be auctioned off on behalf of their beneficiaries.

The company in question is refuting any wrong doing, and now states that they will not give us a key to the property, preventing us from upholding the lease.

There are arrears of ground rent which were due for review in 2021, when we purchased the property in 2024, we instructed a solicitor to begin proceedings to forfeit the lease as no ground rent had been paid, 5 months later the above happened.

The company are looking at getting the ground rent to be agreed at a “peppercorn” rate and an extension to the lease. As per our lease lessor and leasee need to agree on a chartered surveyor establishing the rateable value of the property and therefore the ground rent, but the company are being uncooperative.

Looking for advice and expectation management in terms of legal fees and likelihood of a reasonable ground rent being established and arrears paid.

The company in question are threatening to put their legal costs into us and all we want is to enact the terms of the leasehold – partner is very concerned this could cost a substantial amount of money for little to no return.

Just to say we are first-time homeowners and first time freeholders.

Thanks,

Ed


Share This Article


Comments

Andy

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

12:01 PM, 11th February 2025, About 3 hours ago

A baptism of fire to property ownership. This will be difficult because your own home is adjoining the site, but try to remove emotions as much as possible - this sort of issue can become very emotive when the other side act like this. Have initial conversations with 2 or 3 good leasehold conveyancers; get a handle on what a reasonable ground rent will be. Note, if the lease is extended then ground rent will now be minimal. The value to you is in the extension of the lease, not the ground rent. The existing lease is likely drafted in your favour as freeholder i.e. legal costs of lease extension are to be borne by the lessee, but check this.
Recognise that the company is attempting to bully you. They shouldn't have disclosed to you their intention to sell at auction - now you have leverage; if they want to extend the lease before selling they need to engage in the standard lease extention process and likely pay your fees (again, check lease). The idea that they'll force an extension and you'll have to pay everything is pure fantasy. Unfortunately, there are imbeciles like this in the sector, but don't let them dance to their tune - lean on to a trusted legal adviser so you have confidence in your position.

Freda Blogs

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

14:57 PM, 11th February 2025, About 11 minutes ago

Contact ALEP, the Assoc of Leasehold Extension Practitioners. They have Chartered Surveyor and Solicitor members who are experts in this field.

Most surveyors and solicitors do not have the necessary experience in this specialist area, so I strongly recommend you appoint someone who can properly advise. Good luck.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More