My landlord is missing, how can I still buy my freehold?
A missing landlord can feel like a leasehold property owner’s worst nightmare, particularly when you’re pursuing the right to purchase your freehold. Many understandably assume that a vanished landlord equates to a dead end in the enfranchisement process. However, the law provides a pathway, albeit a complex one, to securing your freehold even in these challenging circumstances. This article aims to explain this process, providing a clear, concise guide for leaseholders.
What is enfranchisement?
Enfranchisement is the legal right granted to qualifying leaseholders to purchase the freehold of their property. This empowers leaseholders, granting greater control and often enhancing property value. Two critical questions arise when considering enfranchisement:
- Eligibility: Do you, as a leaseholder, meet the statutory criteria for purchasing the freehold?
- Valuation: If eligible, what is the likely cost of acquiring the freehold?
The standard procedure for an enfranchisement claim would require the tenant to serve a notice upon their landlord(s) and then the landlord would have a specified time limit to respond to the notice by either, admitting the tenant’s right or denying the tenant’s right and if so, the landlord must provide the grounds for denying the right.
What if my landlord is absent or simply just missing?
For instances where the landlord is missing or their identity could not be ascertained, the leaseholder can make an application to the court for a declaration that that they have the right to acquire the freehold of the property. However, before this application to the court can be made, there are some criteria to satisfy before the courts will consider granting an order vesting the premises in the leaseholder. The Leasehold Reform Act 1967 (the Act) can provide leaseholders with some comfort as it stipulates how they can proceed with acquiring the freehold in the event that their landlord is absent.
The Acts states that a leaseholder must apply to the County Court for a vesting order. The application has effect as if it were a notice of claim to acquire freehold, even if the freeholder is subsequently identified. The Court will require a witness statement to demonstrate that the applicant satisfies all eligibility criteria for the enfranchisement process and that they have made reasonable enquiries in order to try and ascertain the identity and location of the freeholder. This information must be accompanied with the claim form. Talbots Law’ work with some tracing agents who can produce a report that can be relied upon to satisfy this aspect of the claim.
If the tracing of the landlord proves unsuccessful, the court has the discretion to grant a vesting order on terms it deems appropriate. This effectively dispenses with the need to serve a notice on the landlord, overriding standard procedural rules.
Valuation
It is best practice to obtain a valuation before issuing the claim so that the leaseholder proposing to purchase the freehold of their property is aware of what this outlay will look like and if it’s affordable for them. This is because if the court does indeed grant the vesting order, they will most likely order the leaseholder to pay the value of the freehold into the court funds office. This is so that in the event that the landlord (or any of its beneficiaries) appear at any point in the future, they will not be out of pocket. Whilst a basic desktop valuation can be carried out at the initial stages (and before proceedings are issued), after the claim has been issued the court will refer the matter to the First Tier Tribunal (Property Chamber) for them to determine the price of the premium that the tenant will pay to the court. A more formal valuation will be required for this.
How can Talbots Law help?
A missing landlord doesn’t necessarily mean you can’t enfranchise, with the right approach and professional guidance, you could still achieve your goal of owning the freehold to your leasehold title, even where your landlord is absent or simply missing. Our Property Dispute Resolution team has extensive experience dealing with a range of Landlord and Tenant issues, so please do not hesitate to get in touch with one of our Landlord and Tenant specialists who will be happy to assist. Call our team on 0800 118 1500 or email newbusiness@talbotslaw.co.uk
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Disclaimer
The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional.