Buying freehold of flat
Discussion
I own the leasehold on a flat which is one of 6 in a block. Freeholder wants to sell the freehold for about £10,000 among all of the leaseholders.
Seems like a no-brainer to me to buy it.
4 of the 6 leasehold owners want to buy the freehold. The other two have not objected, but I haven't been able to find them either.
One flats whose owner wants to buy the freehold, is shared-ownership (ie local housing authority is also a part-owner).
What do I need to know?
Seems like a no-brainer to me to buy it.
4 of the 6 leasehold owners want to buy the freehold. The other two have not objected, but I haven't been able to find them either.
One flats whose owner wants to buy the freehold, is shared-ownership (ie local housing authority is also a part-owner).
What do I need to know?
Ignore James TiT, he is a troll or bot.
The usual mechanism is to form a limited company, have it buy the freehold, and allocate shares to the leaseholders, with an agreement to transfer the shares on sale of the leasehold. In your case those buying could stipulate that the other leaseholders can at a later date subscribe for shares but on payment of the appropriate price.
The usual mechanism is to form a limited company, have it buy the freehold, and allocate shares to the leaseholders, with an agreement to transfer the shares on sale of the leasehold. In your case those buying could stipulate that the other leaseholders can at a later date subscribe for shares but on payment of the appropriate price.
creampuff said:
4 of the 6 leasehold owners want to buy the freehold. The other two have not objected, but I haven't been able to find them either.
What steps have you taken? Start by finding out who has title - https://www.gov.uk/search-property-information-lan...
Who manages the block? They should be able to assist.
Breadvan72 said:
The usual mechanism is to form a limited company, have it buy the freehold, and allocate shares to the leaseholders, with an agreement to transfer the shares on sale of the leasehold. In your case those buying could stipulate that the other leaseholders can at a later date subscribe for shares but on payment of the appropriate price.
OK thanks. Due to being away, I read the offer letter late. The offer expires in 2 weeks. What do I need to do now?
I'd put your collective intention to proceed in writing to the freeholder (probably co-signed with the other 3), subject to satisfactory searches / surveys, and ask them for a draft contract. That (I would hope) circumvents the 2-week window and gives you time to arrange your due diligence and set-up a suitable means to 'take ownership'.
Doing it properly:-
- You'll need a solicitor
- You'll want to do some searches
- You may want some sort of survey, depending on who moved in most recently and whether they did anything of that nature.
With regard to the other 2 leaseholders, IANAL, but...
...my gut feel is the 4 of you could buy the collective freehold, 'sell'/assign the respective ones onto yourselves, then keep the remaining two in joint ownership pending discussions with the other two owners. That DOES rather leave you as their landlord though, unless they agree to the buy-out...you may want some advice on landlord obligations - part of the due-diligence above...
(worst case, see if you can gift them their freeholds if they don't want to pay and your obligations appear onerous)
Edit: See BV's comment at 12:01 - he knows what he's talking about.
Doing it properly:-
- You'll need a solicitor
- You'll want to do some searches
- You may want some sort of survey, depending on who moved in most recently and whether they did anything of that nature.
With regard to the other 2 leaseholders, IANAL, but...
...my gut feel is the 4 of you could buy the collective freehold, 'sell'/assign the respective ones onto yourselves, then keep the remaining two in joint ownership pending discussions with the other two owners. That DOES rather leave you as their landlord though, unless they agree to the buy-out...you may want some advice on landlord obligations - part of the due-diligence above...
(worst case, see if you can gift them their freeholds if they don't want to pay and your obligations appear onerous)
Edit: See BV's comment at 12:01 - he knows what he's talking about.
Breadvan72 said:
Ignore James TiT, he is a troll or bot.
The usual mechanism is to form a limited company, have it buy the freehold, and allocate shares to the leaseholders, with an agreement to transfer the shares on sale of the leasehold. In your case those buying could stipulate that the other leaseholders can at a later date subscribe for shares but on payment of the appropriate price.
This.The usual mechanism is to form a limited company, have it buy the freehold, and allocate shares to the leaseholders, with an agreement to transfer the shares on sale of the leasehold. In your case those buying could stipulate that the other leaseholders can at a later date subscribe for shares but on payment of the appropriate price.
We bought a share of freehold about 2 years back. The company formed owns the freehold of flats that didn't take part and they have the option of buying at the initial price for a while. As 4 of the 6 want to buy that's all you need (>50%)
Whoever you want to be - any or all of you, or someone else entirely if you trust them.
Ltd co. needs at least 1 director and 1 company secretary (cosec must be diff't to director if only one director, can be a director if >1).
Directors and shareholders have very different rights/responsibilities, but usually in these circumstances are the same people.
Ltd co. needs at least 1 director and 1 company secretary (cosec must be diff't to director if only one director, can be a director if >1).
Directors and shareholders have very different rights/responsibilities, but usually in these circumstances are the same people.
Covers all leasehold and rental properties, with both consideration being given to regulating both letting agents and property management companies. HMG presently awaiting answers to questioner, the same that needs to be completed by Wednesday this company week. Long overdue that both type of agents are strictly vetted, regulated and licensed, with criminal sanctions imposed for any wrong doing.
https://www.gov.uk/government/consultations/protec...
https://www.gov.uk/government/consultations/protec...
FunkyChucker said:
BobSaunders said:
Push it out until January 2018. There is currently a review occurring in government (housing) regarding freeholds/leaseholds and the results are expected at some point in Jan. There is also a wider APPG on leasehold as well.
Is this just for new build houses or existing flats etc.? Any links to further info? thanks.Edited by FunkyChucker on Friday 24th November 23:41
https://www.gov.uk/government/consultations/tackli...
https://www.gov.uk/government/news/crackdown-on-un...
Several back bench discussions occurring, and two 10 minute bills chambered so far - on both sides of the house.
OK, expiration of the offer is fast approaching and I have a majority of the owners who want to accept it.
What needs to be done to accept it?
Can I write to the freeholder on behalf of all the owners and pay the 10% deposit and that is it? Or do a majority of owners need to write in themselves?
What needs to be done to accept it?
Can I write to the freeholder on behalf of all the owners and pay the 10% deposit and that is it? Or do a majority of owners need to write in themselves?
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