Ground rents for sale with a failed building company

The problem – Administrators with ground rents for sale

The administrators of a failed building company wanted to sell the freehold to a block of some 70 flats subject to 125 year leases. Unfortunately, there were serious snagging issues with the block. For example, the structure was dangerous in places; there were fire hazards; there was no lighting in some of the communal areas; rubbish was not being collected.

Clearly, the block required urgent attention.

The solution

Our block management company, Compton Property Management, stepped in immediately to provide management services; the number one priority was the safety of the residents. Another complication was that, as a result of changes to the overall scheme, the service charge contributions did not add up to 100%; we sorted out that problem by applying successfully to the Leasehold Valuation Tribunal to have the leases changed. When the management of the block was on an even keel and after the leases had been varied, we completed the purchase.