Selling a property with an absent freeholder can be a real headache. It’s like trying to sell a car without the keys. But don’t worry, it’s not impossible. Let’s look at how you can tackle this tricky situation.
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What is an absent freeholder?
An absent freeholder is the owner of the freehold who can’t be found or contacted. This can happen for various reasons. Maybe they’ve moved abroad, or perhaps the company that owned the freehold has gone bust.
Why is it a problem?
When you’re selling a leasehold property, you need information from the freeholder. This includes details about service charges, ground rent, and any planned works. Without this, buyers might get cold feet.
Steps to sell with an absent freeholder:
- Try to track down the freeholder
- Consider buying the freehold
- Get indemnity insurance
- Be upfront with potential buyers
Let’s break these down:
Tracking down the freeholder
Start by checking the Land Registry. If that doesn’t work, you might need to hire a tracing agent. It’s like hiring a detective, but for property matters.
Buying the freehold
If you can’t find the freeholder, you might be able to buy the freehold. This is called ‘enfranchisement’. It’s a bit of legal jargon, but it basically means taking ownership of the freehold.
Here’s a quick comparison:
| Leasehold | Freehold |
|---|---|
| You own the property for a fixed term | You own the property outright |
| You pay ground rent | No ground rent |
| You need freeholder’s permission for changes | You can make changes freely |
Indemnity insurance
This is a type of insurance that protects the buyer if the absent freeholder suddenly appears and demands money. It’s not cheap, but it can make your property more attractive to buyers.
Being upfront with buyers
Honesty is the best policy. Tell potential buyers about the situation from the start. Some might be put off, but others might see it as an opportunity to negotiate a better price.
How long does the process take?
The process of extending a lease with an absent freeholder typically takes 6-12 months, depending on the complexity of the case and court schedules.
Useful tips:
- Keep all your correspondence about trying to find the freeholder
- Get a good solicitor who has experience with absent freeholders
- Be prepared for the sale to take longer than usual
Can I sell a leasehold property without a freeholder?
Yes, you can sell a leasehold property without a freeholder, but it can be more complicated. You’ll need to be transparent about the situation with potential buyers and may need to consider options like indemnity insurance.
Sell with certainty & speed
How long does it take to sell a property with an absent freeholder?
Selling a property with an absent freeholder can take longer than a standard sale. It might add a few weeks or even months to the process, depending on the specific circumstances and the solutions you choose.
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