I can’t sell my rental apartment because the owner refuses to sign the paperwork: what can I do?

I have a flat for rent in a shared building that I have been wanting to sell for several years.

However, every time I find a buyer, the owner refuses to sign any documents, so the sale falls through.

The landlord owns five of the seven apartments in the building, so he is the majority owner, so I can’t get a group together to help. SN

Ed Magnus from This is Money responds: This sounds like a nightmare and is another example of how tenants are being defrauded.

Typically, tenants require their landlord or management company to complete and sign a form known as the Leasehold Property Enquiry Form (LPE1).

The LPE1 form includes details of ground rent, insurance, service charges and fire safety.

Some leases also include a clause stating that a leased property cannot be transferred to a new tenant unless the landlord gives written consent. This is known as a licence to transfer.

The simplest solution in this case would be to contact the owner and try to resolve the situation. But I can only assume that he has tried this tactic given the fact that this has stopped several sales, rather than just one.

When I first posed this question to a legal expert, the initial response I received was, “This is a surprisingly complicated question with no simple answer.”

But they persevered and two lawyers returned with their advice on the matter.

We spoke with Mike HansomReal estate litigation consultant at BLB Solicitors and Simon NosworthyHead of Residential Property Conveyancing at Osbornes Law.

Do tenants need landlords to sign paperwork to sell?

Simon Nosworthy answers: Unfortunately, this is not the first time I have encountered this and it is an extremely difficult situation for a property seller.

It may seem incredible, but the owner has no legal obligation to complete the forms necessary to move forward with the sale of his property: the LPE1 forms.

This leaves people like you in an impossible position if a homeowner decides to be stubborn or play God in your sale.

Mike Hansom adds: It is not clear why the owner is being so difficult, but unfortunately there is no simple answer, because there is no general legal obligation for the owner to respond to pre-sale enquiries.

In this case there is a clear legal loophole because, strictly speaking, the owner has not refused consent or blocked the sale.

However, as you have discovered, the result is that your buyers back out, making the property unsaleable.

What should they do now?

Mike Hansom answers: In practical terms, your best option is to try to contact the owner to understand why they are not responding and try to negotiate with them.

You could offer to pay the reasonable costs of providing the answers (to which you are entitled in any event).

It could be argued that they are in breach of the Rics Service Charge Residential Management Code of Practice.

Paragraph 13.10 of the Code states that the owner “shall” provide responses within a reasonable time using LPE1.

Unfortunately, the Code is not legally enforceable, so you cannot obtain a court order to force your landlord to comply with it.

However, it would be relevant if the property court orders the owner to hand over control of the freehold to a court-appointed trustee.

Since the landlord owns several apartments in the building, are there ever key people on site?

If it is not possible to contact them in person, the owner’s name and address must be included on all service charges and ground rent claims.

In addition, you have a legal right to have the owner provide you with certain information.

You can obtain information for the buyer’s attorney through these alternative means. However, this will take time and may not be sufficient. Furthermore, it does not create a good impression on potential buyers.

Although this is unlikely in your case, another possible explanation is that the owner has disappeared or ceased to exist. For example, it may be an insolvent company. In such cases, an absentee owner insurance policy may be of help.

Simon Nosworthy adds: One option you have is to hire an attorney experienced in property litigation to help you, but this will, of course, involve legal fees.

Ordering a lawyer to threaten legal action to recover wasted costs often focuses the other party’s mind.

Having an attorney act on your behalf also sends a powerful message to the landlord that you are serious about getting them to complete the necessary forms.

However, while a legal letter often has the desired effect, there is no guarantee that this will happen and your claim is unlikely to hold up in court.

‘This is a loophole that needs to be closed and I urge you to contact your local MP to put pressure on him to do so.

What should be your last action?

Mike Hansom answers: If all else fails, section 24 of the Landlord and Tenant Act 1987 gives you the right to apply to the property court to appoint a receiver.

If successful, the court appoints an independent person to take over management of the building, forcing the owner to hand over the reins.

The manager completes the LPE1 form. His application is based on the fact that the owner has not complied with the Code of Practice mentioned above.

If the landlord has breached the Code or the terms of the lease in other ways, those would also be relevant considerations for the court.

Unfortunately, this is a lengthy and potentially costly application, and success depends on the discretion of the tribunal, which is similar to a court of law.

But the threat of a request may be enough to get the owner to cooperate.