Registration of legal title

archess200

A consortium of local people are looking to buy a bank of garages at auction. Whilst we have formed an informal 'club', eventually we want to register each garage individually. I am told by a solicitor, that we would have to register it to the group, initially, and then transfer at no cost to each individual. However, there are loads of legal fees associated with this. The original conveyancing costs and LR charges, then again almost the same conveyancing costs and LR charges to each member: there are 12 garages, so that makes it 13 x a standard fee.
Anybody suggest an alternative to lessen the ridiculous fees?

DVardysShadow

As it is an informal club, as far as I can see, it would be registered to you all as tenants in common, but with the constraint that only 4 people would appear on the LandReg title. This should not be a big problem in itself. I think that a possible way to proceed from that point would be to continue as Tenants in Common, with some kind of Trust Deed, dealing with beneficial ownership and disposals. It would probably be an expensive Trust Deed, but should work out cheaper overall.

Of course the other way of looking at it is that the overall cost to any one person would be 13/12 of a single conveyancing fee, which is not too bad.

HappyMJ

Personally I'd set up a non-profit company limited by guarantee and have that company purchase the garages. The members of the company can then contribute fees towards the council tax and any maintenance needed on the land and buildings. When the land is eventually sold, if ever, then any proceeds of the sale can be distributed to the members who either originally contributed or to those who have purchased their memberships from the original group.

Bananamana

archess200 wrote: »

A consortium of local people are looking to buy a bank of garages at auction. Whilst we have formed an informal 'club', eventually we want to register each garage individually. I am told by a solicitor, that we would have to register it to the group, initially, and then transfer at no cost to each individual. However, there are loads of legal fees associated with this. The original conveyancing costs and LR charges, then again almost the same conveyancing costs and LR charges to each member: there are 12 garages, so that makes it 13 x a standard fee.
Anybody suggest an alternative to lessen the ridiculous fees?

If it's registered now then you could look at approaching the vendor after the sale and asking if they mind executing 12 deeds rather than the usual 1. I shouldn't see a problem if you offer to part pay their cost of doing so and it will save doing a registration.

The legal fees shouldnt be that much - and you should point out to the solicitor once the initial reg is done your drafting the same transfer of part each time but just changing the name and plot.


Just some thoughts

archess200

Thanks Banamana: I'll give that a go.

lincroft1710

HappyMJ wrote: »

members of the company can then contribute fees towards the council tax

Council Tax is not payable on a lock up garage less than 25 sq metres in size and used to house a private car.