Freeholder serves a Section 20

[prudentnun]

I bought a first floor maisonette flat in a converted house, just over a year ago.  The owner of the ground floor flat had become bankrupt in 2020 and the freeholder is seeking to acquire the property.  The flat should be the freeholder's by February 2022.  The freeholder told me that the lender (Nat West) had tried to repossess the property but Nat West had made a mistake with due process.  I think what could have happened is that the lender had sent a court official to the downstairs property in September last year.  The bank probably thought that by that time, the former owner of the downstairs flat would have had  his debts discharged by the Official Receiver.

 

However, it appears the debtor is not cooperating and the Official Receiver has suspended his discharge.  I was told when I called the Official Receiver that he is still a bankrupt.  I read somewhere that if someone is a bankrupt, the creditors should apply to the Official Receiver and not seek to get in touch with the individual directly.

 

The freeholder wants to spend a lot of money on the property and the external house.  Most of the building works he is suggesting are not essential or structural  but more cosmetic and will help with a quick sell.  When my surveyor looked at my property before I bought it, he suggested that a few things need to be done soon but others can wait.  The problem is, I will have to pay for half.

The leasehold document that I signed said that both leaseholders have to decide and agree on repairs.  He wants to do the deciding.  For instance, I want to repair the front communal door but he wants a brand new one.

 

He suggests that I get a loan against my property.  I am in my mid 50s and I have no plans to do that.  He said his lawyers are fairly confident that he will have the property by February.  At that stage, he will send me a list of "repairs".  He said that ultimately, it could end up in a tribunal court.

 

I feel this is unfair, as this is about him selling a flat where the former owner owed him around £5k.  I am not sure if he has to pay the lender back what Nat West is owed but in either case, he stands to make a tidy profit.  I would like to suggest a sink fund of about £500 a year each but he will not be interested in it as he would like the builders over ASAP.

 

I am thinking of writing to Nat West, to see if they have given up on repossessing the property.  Does anyone have any suggestions please? 

 

 

[unclebulgaria67]

Do you think Natwest would be willing to communicate with you ?  e.g. Data protection, confidentiality.  

 

At this stage unless you have something in writing from the freeholders or their Solicitors with firm proposals, I don't think I would do anything.  In the meantime, I would suggest reading through the lease several times and see what it says exactly about any contribution you need to make towards maintaining the property.

 

I would think you are only responsible for maintenance costs and not to improve the property.

[prudentnun]

Thank you for your response.  I will read through the lease a few times.  Happy New Year

[stu007]

Hi

 

I have to agree wait to see what the Freeholder provides in writing.

 

As for the ground floor flat and their bankruptcy I am afraid that is nothing to do with you as a Leaseholder and will not help you in this situation with the Freeholder.

 

How many Leaseholders are within the Building?

 

Remember the Freeholder whatever they consider doing in the building if it is going to cost Leaseholders they need to inform the Leaseholders of these added costs and you the Leaseholder have the Right to Object in writing with your reason. The Freeholder can't just go direct to a Tribunal.

 

Have you considered discussing with the other Leaseholders within the Building 'The Right to Manage'?

 

You need to really have a good read as already mentioned of your Leasehold Agreement and do some research so you are aware of your Rights as a Leaseholder.

 

Some links for you to look at:

 

Set up and run a flat management company - GOV.UK

WWW.GOV.UK

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How to set up a flat management company to manage property on residents' behalf and what you must do to run it legally

 

Right to Manage - The Leasehold Advisory Service

WWW.LEASE-ADVICE.ORG

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Outline of the right for leaseholders of a building containing flats to take over the management of the building (right to manage)

 

What is "The Right to Manage?"

ARMA.ORG.UK

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Right to Manage gives leaseholders the opportunity to take over the management of their property - but with very real responsibilities.

 

Leasehold property: Leaseholder rights and responsibilities - GOV.UK

WWW.GOV.UK

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Leasehold property - leasehold disputes, buying the freehold, service charges, lease extensions and Right to Manage

 

Living in Leasehold Flats - A guide to how it works - The Leasehold Advisory Service

WWW.LEASE-ADVICE.ORG

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A guide to how it works with an explanation of the nature and typical rights, responsibilities and obligations that relate to the ownership of a...

 

Leasehold and leaseholders rights - Shelter England

ENGLAND.SHELTER.ORG.UK

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Leaseholders own property for a limited time, and must consider interests and pay charges to the landlord who owns the freehold.

 

[prudentnun]

Hi Stu007

 

Thank you so much for the above.  There are two flats in this property:  my first floor flat and the ground floor.  It is not owned by the local authority or a social housing group.

 

I will read through what you have included, along with the lease agreement.  I will particularly examine the right to object as I think it will certainly go that way.  I was not aware of such a right, so I am immensely grateful.

 

Happy New Year.

[prudentnun]

Hi, 

I have a leasehold flat and the freeholder has been served a Section 20 part 1.

 

 It is to paint the exterior wall of the converted house where I live. 

It is a two-floor building and I own the first-floor maisonette and the freeholder owns the ground floor flat. 

The freeholder plans to eventually sell the ground floor flat but I think he is hoping I sell up and leave first.

 

He (the freeholder) has sent me part one of the Section 20.  It says that the deadline for submissions is the 15th February 2023.

 

What concerns me is that he wrote to me on the 12th January this year about this notice but he told me in the next email that he sent the same day that he sourced a contractor before Christmas and he sent me the quote in the attachment.

 

I would like to delay spending any money on this for as long as I can and so after this part 1 deadline on the 15^th are there any other deadlines as I understand, a Section 20 is a three-stage process?

 

I have sent him the details of a contractor who is a bit cheaper than the one he suggested but what say do I have in insisting that we go for the cheaper contractor please?

 

Also, a year ago, we went halves on replacing the front door with a new door.  My share was around £1,200 and I paid the freeholder back £400 a month.  He was fine about that and there was no Section 20 etc. 

 

When this exterior paint work is done, it will come to about £3,500 and my share will be about £1,750 and in view of my finances, I wondered if I can repay at £400 a month.  I have not asked him yet but I am worried that he may just say I have to pay the lot within a month. 

 

I am also worried because I read you have to disclose to a potential buyer that a section 20 has been served. 

Will this still apply once I have paid my share please?

 

I would be so grateful for any suggestions.

 

[dx100uk]

old and new threads merged for history

 

dx

 

[stu007]

Hi

 

Please as dx100UK has pointed out keep to the same Topic so all your history is in the one place.

 

Now to answer your last question first on having to disclose a Section 20 to a Potential Buyer.

 

Yes that would be correct if the work the notice is concerned with is still ongoing and it hasn't been fully paid for. 

 

If the works for the Section 20 have been fully completed and all cost have been paid then as such No but I would still air on caution and still disclose that their was a Section 20 that the works have been completed and fully paid for with evidence as this would put any Potential Buyer at ease.

 

Your next question you can present your contractor that is cheaper as part of the Section 20 to the Freeholder and also ask them if their is the option of a Payment Plan Option available as well.

 

Remember to have a god read of my pervious post on the Right to Object.

[prudentnun]

Thank you for your feedback guys.  Much appreciated.

On 25/01/2023 at 01:35, stu007 said:

Hi

 

Please as dx100UK has pointed out keep to the same Topic so all your history is in the one place.

 

Now to answer your last question first on having to disclose a Section 20 to a Potential Buyer.

 

Yes that would be correct if the work the notice is concerned with is still ongoing and it hasn't been fully paid for. 

 

If the works for the Section 20 have been fully completed and all cost have been paid then as such No but I would still air on caution and still disclose that their was a Section 20 that the works have been completed and fully paid for with evidence as this would put any Potential Buyer at ease.

 

Your next question you can present your contractor that is cheaper as part of the Section 20 to the Freeholder and also ask them if their is the option of a Payment Plan Option available as well.

 

Remember to have a god read of my pervious post on the Right to Object.

 

Thank you.  Really helpful feedback

Edited January 26, 2023 by prudentnun