Buying freehold of flat

[anonymous-user]

Buy a company off the shelf. While getting that sorted write and accept the offer for those on board - so long as they give you authority to do so.

Get the company up, fund it, issue its shares, have the sale made to the company. Make each shareholder a director if wished. Annual return and summary accounts are all that is needed.

Edited by anonymous-user on Wednesday 29th November 19:55

[BobSaunders]

Just buy it for yourself and become the landlord? As above by breadvan.

[madala]

When we bought our freehold to our flat, at the time I was under the impression that if two thirds were in agreement to buying that was sufficient for it to go ahead.

I know not everyone was in agreement in our block of 22 flats but we did buy the freehold and then as a limited company also owned the freehold on the flats that didn't want to buy.

Get advice.

[creampuff]

OK, need advice in a hurry:

This the the freehold purchase. I have letters from a majority of owners stating they want to purchase the freehold. We have the deposit.

Do I just write a letter to the freeholder on behalf of myself and the other owners with a cheque for the deposit? Do I need a solicitor to do it?

I've found out the freeholder is acting through an agent who can't give me any advice whatsoever on how to accept or pay; all I have is the name and address of the freeholder.

Obv us owners are going to get a solicitor to help with the purchase, I just didn't expect we might need one just to pay the deposit so we don't have one organised yet.

[Barkychoc]

All the company setting up stuff if you are not sure just get an accountant to do it for you - ask about costs up front particularly on the Ltd company annual return fees. Setting the company up won't cost much.

[BobSaunders]

https://www.moneysavingexpert.com/mortgages/buy-fr...

https://www.moneysavingexpert.com/mortgages/buy-fr...

Everything is there in the second link. You are being offered the freehold as legally you have the right to first refusal.

Further information can be found here - https://www.lease-advice.org/

[Wings]

You need to engage a solicitor such as Livingstons based in Cumbria, link below, they will deal with both setting up a Limited Company and the purchase of the Freehold.

Name of the Limited Company is the first decision you and your fellow leaseholders first need to make, with it usually if the block is no. 49 County Road, Cumbria, then the name of the Limited Company is 49 County Road Management Company Ltd.

Then when registering the “Company” you will need a “memorandum of association”, being a statement signed by all initial shareholders agreeing to form the company.

Followed by the company’s ‘articles of association’ - written rules about running the company agreed by the shareholders, directors and the company secretary, the same covering the quorum of directors to be in attendance for a meeting to be both held and a vote to be taken.

https://www.lease-advice.org/advice/find-the-right...

http://www.bizdb.co.uk/company/livingstons-solicit...

https://www.gov.uk/limited-company-formationhttps:...

[madala]

Looks like you are all set to go Creampuff ........ good luck

[anonymous-user]

My favourite conveyancing shop is this one -

http://www.unsworthrose.co.uk/contact.shtml

You can buy a company from agents such as Dupont.

[creampuff]

I've received an email from the Freeholder saying they don't want to sell it and withdrawing the offer.

Can they withdraw the offer?

[anonymous-user]

Yes, but in some circumstances you have a statutory right to buy -

https://www.lease-advice.org/faq/how-can-i-buy-the...

[creampuff]

I'll have a read. Can you think of a reason why a freeholder would withdraw an offer?

[anonymous-user]

Hassle, delay, not enough money, whatever.

[BobSaunders]

Announcement yesterday from DCLG re. freehold's.

Also, probably no longer has the need for the quick cash anymore.

[Gavia]

BobSaunders said:

Announcement yesterday from DCLG re. freehold's.

Also, probably no longer has the need for the quick cash anymore.

Wow, that has all the hallmarks of a sledgehammer and nut scenario, like they did with clamping. I’d love to understand the government’s thinking on these “oh look a few companies are abusing the system that’s been around for decades / centuries. Any idea on the solution to root out these sharp practice companies? Yep, just ban it, ban everything, then ban it more again”

There’s going to be all sorts of fun when they realise that a lease isn’t the same as paying a service charge for shared services. It seems to pass a lot on here, by too.

[Wings]

https://www.lease-advice.org/news-item/leasehold-i...

[Sir Bagalot]

creampuff said:

I'll have a read. Can you think of a reason why a freeholder would withdraw an offer?

They had someone else lined up to buy the freehold.

This is what happened us. Given notice and we were organised enough to get majority of lease holders to agree to purchase. They let it get as far as about 2 weeks from exchange when they pulled the sale.

They weren't too happy as because they pulled it it meant they had to pay our legal fees to date

Came back to market later on and we did complete

[creampuff]

The leaseholders (my neighbours) are cheesed off about the freeholder withdrawing the sale. They want me to do the thing where a majority of leaseholders get together and have a right to purchase the freehold, regardless of the freeholders wishes. I'll get onto it once I'm not so busy at work.

I have a more immediate problem though.

I inadvertently paid my ground rent late. The freeholder has slapped me with a £60 late payment charge. This has irritated me more than it normally would have as:
- the freeholder did not write to the leaseholders advising that they had decided to pull out
- the freeholder still has not returned the 10% purchase price deposit, which is now almost 5 months after they withdrew the offer
- I feel that the leaseholder never intended to follow through with the sale and only offered it as a hedge bet against unfavourable changes in the law. The changes were announced the day before they withdrew the offer (via a rather terse email to myself only).

I'd like to send the leaseholder an invoice for additional charges for late repayment of our deposit. Something along these lines:
https://www.gov.uk/late-commercial-payments-intere...

This would be either £40 or £70 depending on if you consider the payment as a single lump for the whole amount (>£999.00) or equally split between leaseholders. Plus interest. Can I do this?

[Red Devil]

creampuff said:

The leaseholders (my neighbours) are cheesed off about the freeholder withdrawing the sale. They want me to do the thing where a majority of leaseholders get together and have a right to purchase the freehold, regardless of the freeholders wishes. I'll get onto it once I'm not so busy at work.

You may have seen this (or a similar link) already, but in case you haven't.
http://www.lease-assn.org/members/leasehold-inform...

Be aware that the enfranchisement option won't be anywhere near as inexpensive as the previous scenario.
If the freeholder is reluctant seller, also be prepared for maximum obstructive tactics.

The local housing authority part ownership of one of the flats could well be an additional complication.
Having one of these in the mix could prove to be a right bureaucratic 'mare.

creampuff said:

I have a more immediate problem though.

I inadvertently paid my ground rent late. The freeholder has slapped me with a £60 late payment charge. This has irritated me more than it normally would have as:
- the freeholder did not write to the leaseholders advising that they had decided to pull out
- the freeholder still has not returned the 10% purchase price deposit, which is now almost 5 months after they withdrew the offer
- I feel that the leaseholder never intended to follow through with the sale and only offered it as a hedge bet against unfavourable changes in the law. The changes were announced the day before they withdrew the offer (via a rather terse email to myself only).

I'd like to send the leaseholder an invoice for additional charges for late repayment of our deposit. Something along these lines:
https://www.gov.uk/late-commercial-payments-intere...

This would be either £40 or £70 depending on if you consider the payment as a single lump for the whole amount (>£999.00) or equally split between leaseholders. Plus interest. Can I do this?

Take indemnified avice. Especially if you're going ahead with the enfranchisement option.
It's never a good idea to go into battle having already prodded the opposite side with a pointy stick.
Don't let emotion (i.e. your irritation) get in the way. It may be your home but you must treat this as strictly business.
Remember the proverb about revenge...

[creampuff]

^ I'm wondering if we are all annoying enough, the freeholder will just sell the freehold to get rid of us, esp if they will incur higher expenses to keep it. Sending them an invoice including a late payment fee and interest would, I imagine, get the annoying ball rolling.