• Freehold With Under-leases

    By Guest on 12th Jul 2019

    Hi,

    I am in the process of buying the freehold to a building that has had two of the floors converted to apartments and sold them on. I am going to convert the meaning top floor from office to residential and sell the apartments on.

    However, the GF and FF both have underleases owned by ltd companies with each flat owner have a lease agreement with the ltd companies for that floor. The issue I may have is that if the building requires extensive maintenance in the future I would be liable as the freeholder and the two ltd companies could liquidate when they are asked to contribute leaving me to foot the bill.

    Does anybody have any experience of this and is there some sort of indemnity policy I could take out to protect myself?

    Hope to hear back soon

    Simon

  • 1 Answers

    By Guest on 13/07/2019

    I have not come across any sort of indemnity policy of that type but presumably if they failed to pay you would issue court proceedings to forfeit their leases and then re-sell the flats for a big profit which would more than cover the service charge loss?

    www.notaryexpress.co.uk

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