Updating post from Reddit.
I am trying to sell my London flat. I had secured a buyer at the asking price only two days after listing. However, two weeks ago, they pulled out because they were worried about there only being 89 years remaining on the freehold with an absent freeholder.
There are two other flats in the building, and for the 13 years I've owned the property, we've purchased building insurance ourselves and have split the cost of upkeep and maintenance of the building and shared spaces. The building and the flat are in good condition, and the absent freeholder hasn't been an issue for us. We pay zero ground rent, but the annual cost of the insurance and upkeep is about £750
When the buyer pulled out, I lowered the price to reflect the cost of them renewing/purchasing the freehold themselves, plus a little more for the inconvenience. They wanted me to buy/renew it myself and then go through with the sale when that was completed, but considering that could take up to a year, I declined.
The property is back on the market. In the meantime, I've found one of the names listed on the freehold and found them on LinkedIn. The estate agent has been trying to reach out to the guy, but he is the CEO of a large financial/tech company and hasn't responded. Not sure about other ways to get in touch with them. Do I need to get a solicitor just to get a message to them?
Just wondering what my options are. My estate agent says the property is unsellable with 89 years left. They seemed keen to sell the place before, but have made it clear it's not a priority for them anymore. Am I screwed?
You mean absent freeholder
I'm a bit confused by lots of this.
Realtor is never used in the UK, a very American term, and also not the person you take advice from on what is a legal question.
You are the leaseholder presumably, so I hope you are not absent. Your freeholder may be absent?
89 years should be fine, marriage value kicks in at 80, so anything above 82 has always been OK - and then you can always begin the extension process prior to selling.
You can also, I believe,attempt to acquire the freehold if the freeholder is absent via a vesting order..
The long and the short is, hire a solicitor and ask them and ignore anything the estate agent says.
Sorry for the terminology mix-up. I AM American. I used to live in the UK, but now based in NYC. I've bought and sold property more recently on this side of the pond and so am used to the American terminology. Thanks for clarifying leaseholder/freeholder.
89 years is getting close but certainly not unsellable, anything close to 80 years is problematic though even then it's just the starting point where it gets increasingly expensive to extend.
With regards to absent freeholders apparently there is a way to force an extension through courts.
Your estate agent/realtor shouldn't be handling lease extentions, your conveyacer/property lawyer should be doing this work. If you can, hire an independent one, not whoever the your agent reccomends who will be overpriced and gives your agent a juicy commision.
Thank you for this link! Very helpful!