We’re about to buy a house that’s leasehold, but the current owner has declared bankruptcy. They’re selling to cover debts, and we’d really like to buy the freehold too, but we don’t want to wait 2 years to force the freeholder to sell. Is there a way for the current owner to serve a notice to the freeholder and transfer their right to buy the freehold to us at the time of purchase? Any ideas?
Hmm, this is tricky. From what I know, if the owner’s bankrupt, they can’t really add to their liabilities or do anything that could harm their creditors. So, if you want that freehold notice served, it’d probably need full agreement and support from the bankrupt owner’s trustees or the people managing their estate. Not sure how likely that is though…
It’s a bit of a grey area, but as DEF said, getting the full agreement from the bankruptcy trustees is key here. Honestly, you might be stuck with the 2-year wait unless they’re willing to work with you.
Wow, that’s a tough situation. But yeah, the bankrupt seller can’t really do much without getting into legal trouble. Might be worth reaching out to a property lawyer to see if there’s any workaround for your situation.
What exactly does ‘serving a notice to the freeholder’ mean in this case? Does it just mean telling them you want to buy the freehold, or is there more to it?