8 ways to sell a flat with a freeholder dispute

While many relationships between a freeholder (the person who owns the building and the land on which it sits) and a leaseholder (the person with a temporary right to own the property) are harmonious, there are times when disputes can develop. Reasons include:

• A change to service charges
• Refusing a request to alter the property
• Poor levels of repair and maintenance
• Nuisance behaviour
• Refusing the leaseholder permission to keep a domestic pet
• Breaches of the lease
• Rent reviews
• Refusing or retracting permission to sub let
• The price of a lease extension
• Late payment or non-payment of fees due
• The cost of major works
• Complaints about anti-social neighbours in the same building

An ongoing dispute between the freeholder and the leaseholder is one of the most frequent reasons why the sale of a leasehold property can take an extended period of time to sell or fail to find a purchaser altogether.

Although selling a rental property with a dispute may feel overwhelming, it is entirely possible - and it’s an area of specialism for LandlordBuyer. We can even help with selling a tenanted property as we don’t need vacant possession to make a purchase.

If you’re a leaseholder and need to sell a flat with a freeholder dispute, here are 8 ways to achieve a more successful sale:-

1. Try and resolve the dispute: the ideal scenario would be to come to market having resolved the dispute. If communication between the leaseholder and the freeholder has broken down, mediation is one way forward. The Leasehold Advisory Service and The Leasehold Association both offer mediation, using an impartial professional to negotiate.
2. Request legal advice: if the dispute is complex and the lease hard to understand, involve a professional property solicitor. Choose one who has up-to-date knowledge of the freehold system and get them to review the dispute alongside the leasehold agreement. A solicitor can use the law to clarify matters and resolve a dispute once and for all.
3. Disclose the dispute: if the dispute remains unresolved, sellers have a legal obligation to disclose the details. When selling a leasehold property, there are two forms that need completing:
   
   The TA6 Property Information Form asks:
   2.1 Have there been any disputes or complaints regarding this property or a property nearby?
   2.2 Is the seller aware of anything which might lead to a dispute about the property or a property nearby?
   
   The TA7 Leasehold information form asks:
   8.1 Has the seller received any complaint from the landlord, the management company or any neighbour about anything the seller has or has not done?
   8.2 Has the seller complained or had cause to complain to or about the landlord, the management company, or any neighbour?
   
   The freeholder or building manager may also send details of the dispute to the conveyancing solicitor. Failure to disclose a dispute can result in a misrepresentation claim.
4. Make allowances for a dispute: with full disclosure required, buyers may be put off purchasing a leasehold property with an ongoing dispute - especially if it may affect how much service charge they pay or their lifestyle. LandlordBuyer would consult with the seller on a realistic price – one designed to get the property sold.
5. Provide the necessary paperwork: delays can be reduced by keeping digital and hard copies of all dispute communication, and having this readily available for buyers and their solicitors. Evidence of any dispute resolution is especially important, so make sure everything is agreed in writing.
6. Don’t expect a quick sale: leasehold flats are not always the most attractive of propositions and appeal will be dented even further if there’s an ongoing dispute. As such, finding the right buyer might take time. Don’t forget, LandlordBuyer provides leaseholders with an alternative. We will buy any leasehold property, even if there’s an ongoing dispute.
7. Consider legal indemnity insurance: leaseholders can take out a specific insurance policy, which provides financial protection should the sales process uncover actions or changes that did not have the freeholder’s consent.
8. Avoid agents & the open market: if you need to sell a house or flat fast – especially if it’s leasehold with an ongoing dispute – contact LandlordBuyer. We purchase directly from landlords with no need to find a buyer via an estate agent on the open market. We won’t ask you to resolve the dispute beforehand, and we can arrange exchange within seven working days, if required. Start a sale by getting your free valuation now.

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