We are about to buy a leasehold house, but the current owner has declared himself bankrupt. They’re selling the house to cover their debts, and we’d like to buy the freehold. We don’t want to wait 2 years to force the freeholder to sell. We were thinking the current owner could serve a notice to the freeholder and transfer the right to buy the freehold to us when we purchase the house. Is that possible? Anyone have any idea?
So, if the seller is bankrupt, they can’t really complete the purchase or do anything that would add to their liabilities. They need full agreement from the trustees managing their bankruptcy to do anything like serving a notice. Sounds like it could be tricky, unfortunately.
I agree with DEF. The bankrupt owner can’t do anything that might affect the creditors. You’d likely need the full support of the trustees for anything to move forward, including serving the freehold notice. Not sure it’s going to happen unless you get them on board.
This is a bit tricky. The bankrupt owner really can’t add anything to their liabilities without risking legal trouble. If you want that notice served, you’re probably gonna have to deal with the trustees managing the bankruptcy. Might be worth reaching out to them directly.
What exactly does ‘serving a notice to the freeholder’ mean? Is it just telling them you want to buy the freehold or is there more to it?