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Q: My flat is on the ground floor of a house converted into two flats. The leases were granted many years ago, and the freeholder seems to have disappeared. The only address I have is that given in the lease, but the landlord does not reply to mail addressed there. The freeholder doesn’t collect rent himself nor does repairs. My solicitor says it will be difficult to sell my flat with a missing landlord. What can I do?
A: The best bet is for you and your neighbour to get together to buy the freehold of the house. Under the Leasehold Reform, Housing and Urban Development Act 1993, a majority of long leaseholders in a house usually have the right to buy the freehold, and there are special provisions that cover the “missing landlord” situation.
Before applying, you will have to show that you made efforts to trace the freeholder. The landlord is supposed to list a current address at the Land Registry, though it is common for details not to be updated. If the landlord is a company, the registered office will be listed at Companies House.
You will also need to work out how much should be paid for the freehold, and this will require a specialist surveyor familiar with this kind of valuation exercise. Once this has been done, you and your neighbour can apply to the local county court for a vesting order. If the court is satisfied that you have the right to buy, and that the landlord can’t be found, the court effectively sells the freehold in the landlord’s absence. The court will refer the question of price to the Leasehold Valuation Tribunal for an independent adjudication and a judge will then sign the sales paperwork for you. The purchase price will be paid into a special court account, but you will generally be allowed to deduct the legal costs you have incurred.
If you need to sell your flat quickly, the buyer should still be able to take out a “title insurance” policy to cover the possibility of the landlord reappearing. This will enable you to sell, though often a buyer will require you to pay the premium for this policy.
Mark Loveday is a barrister at Tanfield Chambers (020-7421 5300). E-mail your questions to: property.consumer@thetimes.co.uk
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