Two women who secured the freehold of a Kensington property through leasehold enfranchisement are suing their former solicitors, claiming that their delays led to a £250,000 increase in the purchase price.
Ann Bradley and Elizabeth Rackow claim that Pemberton Greenish LLP failed to communicate to them that the Phillimore Estate had set a deadline of the end of September 2010 for enfranchisement of 34 Phillimore Gardens, London W8, for £600,000.
As a result, they say that they had to pay a renegotiated price of £850,000 to secure the freehold of the property. Together with additional stamp duty, extra legal costs and other expenses, they are suing Pemberton Greenish for £291,472 plus interest.
In a high court claim issued in September, and recently made publicly available, they say that Pemberton Greenish holds itself out as specialising in leasehold enfranchisement, and that they instructed the firm to act for them in an attempt to enfranchise the property in May 2005.
They say that, by December 2009, the parties reached agreement that the freehold would be conveyed to them for £600,000 and that they would grant a leaseback of flats 9 and 10 to the Phillimore Estate at a peppercorn rent.
However, they claim that the Estate’s solicitors communicated a deadline of the end of September 2010 to Pemberton Greenish which the firm failed to communicate promptly to them.
They say that Pemberton Greenish failed to exercise reasonable care and skill by failing to warn them of the need to take all steps necessary to complete the purchase by the deadline, or risk the Estate pulling out.
They allege that Pemberton Greenish was content to allow matters to move forward at a “circumspect pace”, with the result that the deadline passed and the Estate raised the price to £850,000.
They say that they hired new solicitors and proceeded with the transaction, but had to borrow more money to do so.
The firm is defending the claim.
Bradley and another v Pemberton Greenish LLP HC12F03815
Claim issued by David Haines of Charles Russell LLP on 27/9/12
