This process is all bit odd to me (but I may well have not followed all of it and am not a property lawyer). If the breaches of the lease are rectified then I would have thought that effectively you end up at square one with a compliant lease so I don't follow the conditionality of being required to sell it (not that having this condition doesn't make complete practical sense, I'm just uncertain of the judge's power to require it). I assume its because the only way to fund the costs order is from the proceeds of sale?Sundayjumper wrote: Fri Feb 21, 2025 4:00 pm I'm seeing a catch-22 type situation with the sale. The costs (which are significant) need to be paid before the lease can be reinstated to allow the sale. I can't imagine the solicitor will commit his own money without the sale being locked in, which it isn't until the contracts are exchanged, which can't happen until after he's paid the money.
I don't think there's anything to stop the neighbour simply refusing to exchange contracts on the sale after the lease is reinstated ? Even if the money is a loan to him with short strict terms and repayment on demand or whatever it'll be a nightmare for them to enforce because the neighbour is so impossible to deal with. And that's even assuming they manage to agree a price in the first place. Which as Gavster says, will be extremely hard because the neighbour will be convinced it's worth at least twice the real market value while the solicitor will be wanting to buy for absolute rock bottom below market value.
I guess the issue is that you are not likely to find a buyer for a lease subject to forfeiture so remediable action has to come first - but then see my point above around the lease then being in compliance. I would have thought you then have a compliant lease, debt claim against tenant for payment of costs, failure to pay, declaration of bankruptcy - court appoints official receiver and receiver sells the property.
Perhaps there is a costs reimbursement provision in the lease vis a vis the freeholder and as a result the lease is in breach until the costs are paid. Which then does indeed make the whole thing quite circular and a bit of a gordian knot.