Disputes

Missing Landlords

If your landlord is missing then there are a number of options available depending on your circumstances. The two options are:-

(1) Apply to acquire the freehold or extend your lease under the LRHUD Act 1993; or

(2) Apply under the missing Landlord provisions under the Landlord and Tenant Act 1987.

1993 Act

The process of obtaining the freehold or extending your lease is relatively straightforward under the 1993 Act.  The first step is try to locate the current freeholders.  To do this we will instruct search agents to carry out an address trace, advertise in Times newspaper and advertise in a local newspaper.  If we do find contact details for the freeholders or they respond to the advert we will need to follow the usual procedure for obtaining the freehold (see our Lease Renewal Service or Buying Your Freehold).

Assuming that you are not able to locate the freeholder the next step is to make an application to the Court for permission to dispense with service of the initial notice (the formal notice invoking your right to acquire the freehold or new lease under the 1993 Act) and apply for vesting order.  Not only do you have to prove that the landlord is absent but also you have to prove you qualify to acquire the freehold or a new lease whichever you are asking for. The Court can order you to carry out further searches for the freeholders if it is not satisfied with the searches carried out.  If a vesting order is granted it will be conditional upon the Leasehold Valuation Tribunal determining the terms of acquisition, including the premium you will need to pay.  You then pay the premium into Court and the Court signs the transfer of the freehold to you or the new lease (which ever the case may be) on behalf of the current freeholders once the Leasehold Valuation Tribunal has valued the premium.

1987 Act

An alternative procedure to the above is to apply to aquire your freehold under Part 3 of the 1987 Act by virtue of the missing landlord. The procedure is roughly the same as the above (although the Land Tribunal decides the premium) however this application is more complicated in that you have to prove you have been prejudiced by the missing landlord. It would be worth making the application on these grounds if your lease was short (i.e under 80 years) as the valuation method is different under the 1987 Act and for example you would not have to pay what you call “marriage value” which increases the premium you have to pay under the 1993 Act.

The Premium

In either case order that you know roughly how much the premium is likely to be, so that you can get funding in place, you should instruct a specialist valuer  to carry out a valuation of the freehold or new lease of the property under one or both of the above Acts.  We can recommend a surveyor should you wish. The valuation will provide a guideline so that you can make an informed decision on whether you wish to proceed with your acquisition or new lease. The Leasehold Valuation Tribunal will determine the exact price you will pay if you wish to proceed with the Court application.  The costs of the survey is approximately £575 plus VAT (depending on the value of your flat).

Information on Costs

You will initially have to pay your own legal and surveying costs however we will seek an order from the Court that your costs are paid back to you from the amount you have paid into Court for the premium.  If the Court does make an order that your costs are paid back, these will be refunded to you.

Our fees for carrying out the initial title searches, assisting with the requisite evidence to prove the landlord is missing, applying to the Court for a vesting order, preparing the transfer and attending the Court hearing will be £1750 plus VAT. You will also need to pay the following disbursements: Court fee of £175, surveyor’s fees (estimated at £575 plus VAT), search agent’s fee (estimated at £110 plus VAT) and newspaper advertisement fees (upwards of £67.50 plus VAT).
 

If you require more information on missing landlords please contact us on 020 7485 0888.