License to Assign - Share of Freehold

Richard_Webster

I can't remember the detail now but probably the seller wandered upstairs to the company secretary and asked him to answer the questionnaire that I had sent the seller's solicitors. In answer to the question "Does the company consent to the transfer to Mr XYZ?" he put "Yes". Licence to assign given! No solicitor involved at all and no extra cost.

A few years ago i acted for the residents of local block of flats who set up a company and bought the freehold under the right of first refusal from the builder who was proposing to sell it. The leases contained wording requiring a deed of covenant as a condition of assignment of each flat on a sale. I told the company that this was unnecessary and they had no reason to insist on it. This reduced the costs for anyone selling any of those flats in the future.

The problem is company directors and secretaries who believe the tosh that some solicitors tell them in order to have a nice costs producing stream.