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SolicitorRM
SolicitorRM, Solicitor
Category: Property Law
Satisfied Customers: 4046
Experience:  Director and Principal Solicitor. UK
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I purchased a leasehold interest in student pod

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I purchased a leasehold interest in student pod accommodation. The investment has turned sour. Can I elect to forfeit the lease? There doesn’t appear to be a forfeiture by tenant clause in my lease.
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: I haven’t taken any steps as yet. Ground Rent is paid up to date, but the investment is no longer paying any returns so the asset has become a zombie. I don’t want to be held to a lease when I can nothing with the underlying property.
JA: Where is the leasehold located?
Customer: Bradford
JA: Anything else you want the Lawyer to know before I connect you?
Customer: There’s a possibility that the freehold was sold on to the current freeholder at an undervalued price as part of an overall scheme by the student pod company to devolve or hide assets.

Hi thank you for your enquiry and patience. The terms of the Deed of Lease will bind you and therefore to pull out will be breach of contract and you can be pursued for damages in the event the interest is sold on a loss is made. You may want to explore the suspicion of sale at undervalue perhaps already knowing the truth about the investment not being as potrayed , in which case you could look to sue for p=misrepresentation nd look to recover what you have lost based on their estimates when you purchased the interest. I hope this helps and I would be grateful for your rating at your earliest convenience. All the best

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Customer: replied 1 month ago.
Thank you for your answer. Would your answer be different in light of the following...a condition of purchase of the leasehold interest was a leaseback arrangement to a related subsidiary of the Landlord. The related subsidiary subsequently breached the terms of the leaseback.
I see the Superior Lease and the Leaseback as a “single” contractual arrangement and the breach of one means breach of the entire contract thereby denying the Landlord the right to pursue a claim against the leaseholder that has arisen due to default of the Landlord’s connected company. What say you?

Hi, the subsidiary has its own legal personality and not the same as the 'parent' Landlord, you cannot therefore treat the superior lease and the leaseback as a single contract thereby denying the landlord the right to pursue the leaseholder for breach of the lease. My answer therefore would not be different