Advice - Buying a flat and own the lease for the place above - FTB

PsychomIKE · 6 Oct 2010 at 21:55

Hi all,

I currently have an offer accepted on a repossessed ground floor flat in a converted 2 storey victorian attached building.

The fact that it's repossessed means there is some work to do, though I think it's still undervalued. However, the deeds states I have freehold on the entire property and upstairs has a leasehold of 999.

From what I have been advised this means I have full responsibility for house insurance and upkeep but am entitled to payment from the current tenant upstairs.

Any ideas what I can do?

Dunks · 6 Oct 2010 at 21:56

Speak to a laywer.

PsychomIKE · 9 Oct 2010 at 20:02

I'm giving this a cheeky bump.

I'm immensely busy ATM but I will try speaking with a lawyer this week. What's bothering me is upstairs refuse to answer their door. I believe it might be a single mum with a child, so I can't blame them for not answering to a stranger but I feel I need to know the existing arrangement before being raped by a lawyer.

I thought I could write a letter to 'the occupier' stating that I'm hoping to buy downstairs and need to know ground rent/insurance payment setup but that comes across as a bit aggressive. Any further ideas?

Stanman67 · 9 Oct 2010 at 20:11

It depends what there lease says, if they have no repairing obligations for the structure of the property than it comes down to you but you can reclaim it from them via service charges.

JBuk · 9 Oct 2010 at 20:13

Sounds like too much hassle tbh

EddScott · 9 Oct 2010 at 21:16

PsychomIKE said:
From what I have been advised this means I have full responsibility for house insurance and upkeep but am entitled to payment from the current tenant upstairs.

I would think this is the case.

AFAIK your responsible for the lot but you should be entitled to the rental income from the flat above. If its as you say a single mum she is probably on housing benefit which I believe goes to her and she pays the landlord. If its all got a bit messy she may not have paid for a while and doesn't fancy having to restart paying.

Your going to have to get professional advice. If the above is correct perhaps pop a little note through the door with a mobile number and ask them to get in touch. Better to try and build a working relationship.

JBuk · 9 Oct 2010 at 21:25

Would the ground rent be charged to the owner of the other flat rather than the occupier?

Kutter · 9 Oct 2010 at 23:15

so your responsible for a flat someone else owns ? or they are renting a part of your new house ?

LOAM · 10 Oct 2010 at 00:27

How have you acquired the free hold? Surely you know where the service charge was being paid to as you must have been paying it yourself.

Also its not rent he can charge the lady above, who ever owns the 999 year lease on that apartment can charge that, he can only apply a service charge to cover such things as maintenance, external works etc. She wold only be responsible for 1/3 of this though as you own 2/3 of the building.