“No-one has given us a factual statement on why the freehold was advertised for sale, not the leasehold.” [Comment to VGS]
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This month’s VGS newsletter started off with a news item:
We reported last month that ‘the future of the Drill Hall’ seems to be Done and Dusted – but perhaps not – as in the meantime, there has been some rather confusing advertising by agents which suggests the Rockfish site is for sale – and in the ensuing chatter on social media confusion seems to remain over whether the freehold is being sold and who is doing the selling, with one page asking Exactly what is happening? and another Is this really happening?
There have been developments since then.
Firstly, the issue was brought up at the last Town Council meeting on 4th November, as reported in the minutes:
Cllr Walker asked whether the Rock Fish lease was Leasehold or Freehold as had been advertised. District Councillor Barlow replied that it was a 125-year Leasehold, as previously reported and answered. Cllr Perram raised concerns over the poor provision of temporary toilets whilst the Rock Fish construction was underway. District Councillor Barlow reported that an additional unit giving disabled access and baby changing facilities would also be installed shortly.
To follow up on his question, Cllr Kevin Walker, the VGS representative on the Town Council, has sent in this comment:
“The response to my question to EDDC councillors about Rockfish appearing to offer the Freehold for sale was neither conspiracy nor cock-up but ‘clever marketing’. It was again claimed this was normal business practice for long leaseholds of over 100 years. Apparently they are a form of flying freehold and probably most appropriate for 999year leaseholds. It was suggested by one member that it was a form of misinformation at best and that both STC & EDDC would be wise to monitor carefully what Rockfish did with the lease (and generally). My view is that it’s certainly misleading for those of us who are not property developers.”
Secondly, there has been a press release – issued on 6th November – where the Rockfish CEO explains why Sidmouth Drill Hall ‘long leasehold’ has gone on market.
And yet this does not seem to have really provided that much clarification, as noted by a correspondent:
No-one has given us a factual statement on why the freehold was advertised for sale, not the leasehold. To say that certain sorts of leaseholds are in fact a type of freehold is legally inaccurate. Different freehold exist, for example a flying freehold where the footprint of the property is part of an arch or overhang and doesn’t actually touch the ground, but I cannot find a leasehold which is a freehold of any description.
The government page on leaseholds is here https://www.gov.uk/leasehold-property
and the Law Society page is here https://www.lawsociety.org.uk/public/for-public-visitors/common-legal-issues/buying-a-home/freehold-leasehold-and-commonhold
With a final observation of the details now available on the various online property pages:
Zoopla give a few more details about this property for sale in The Esplanade, Sidmouth EX10, £1,400,000. But interestingly, the first bullet point ‘freehold’ in those details provided has now disappeared…
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