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AWOL Freeholder

Missing Freeholder Traced: Lessee Able to Re-mortgage “Freeholder AWOL for over 34 years, lease in desperate need of extension”

A Newbury Park homeowner in Ilford had been failing to locate her landlord for over 34 years. As a result, she was unable to re-mortgage her property. This was after advice from her lender that they would not lend on a property that has less than 80 years of lease.

Unable to Mortgage

Mortgage lenders don’t tend to borrow against a property which has less then 80 years remaining on their lease. This caused significant stress for our client, who was concerned about the amount of time and money that would be lost as a result of the untraceable leaseholder.

Legal Complications

Technically, a lessee who wishes to renew their lease has a legal right to do so. However, if the landlord is missing you cannot serve the requisite Section 42 notice to compel a lease extension.

As a result, our client faced the prospect of having to pay an additional premium, known as marriage value. Furthermore, the value of the asset can diminish which causes further expense for our client.

The Solution

This is a niche area of the property industry, and many high-street law firms or property managers do not have a hand on the complex legal process, or technology to locate freeholders. This would certainly be a difficult task for our client to achieve without the necessary expertise.

Connections within our team have the specific expertise required to trace leaseholders. For a minimal fee, we searched most electronic data bases and managed to locate the leaseholder. We approached him directly on behalf of the client on an informal basis. We finally managed to negotiate over 50% less than the market value for the _________.

The Conclusion

After we found the leaseholder and negotiated terms, our client was finally able to re-mortgage their property. We are pleased to report that the client was relived for having saved significant time and money.

To consult our team for any major works required, please contact the team today.

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