Share of freehold

forevermee

I cant believe there are no other options, where a missing freeholder is concerned and I want to sell my share of freehold. Does anyone have any experience of this?

Doozergirl

Could you explain a bit more please? Your post doesn't make sense to me.

Richard_Webster

I'm guessing that 2-4 individuals own the freehold of the building in which there are 2-4 flats and one of the co-freeholders has disappeared (perhaps having had his flat repossessed.) All have to sign to transfer a share in the freehold to an incoming flat buyer, so if one won't sign or can't be found you can't transfer the freehold and it gets frozen in the names of those who own it. The remedies are not straightforward and can involve court proceedings and many thousands of pounds in legal costs.

If the freehold is owned by a company this is not an issue because the company owns the freehold, not the individuals so so the loss of a member of the company doesn't matter.

If literally owned by individuals you have a problem that I warn all buyers of shared freeholds about. I am actually surprised how few solicitors have realised the potential problem. I can't advertise here but if you ever find my website you will find a whole section devoted to shared freeholds and the issues involved.

Problem is that when 2-4 flat owners club together typically to buy the freehold in a house converted into flats from the builder who did the conversion, they want the cheapest option and don't want to bother with a company or the alternative a deed of trust that allows the signature of a missing freeholder to be dispensed with.

If you then buy into an existing shared freehold the other flat owners will usually be quite happy with the way things are. Until a problem arises nobody can see the possible issue so they don't want to spend any money dealing with it by setting up a trust or transferring the freehold to a company, and when they realise it is generally too late.

pete1968_2

Richard, the OP doesn't give much info, but taking your example of the FH being owned by 2-4 people, if one owner is missing cannot the other 3 use the power conferred under s36 Trustee Act 1925 to replace him.

I appreciate the fact that the beneficial interest still remains with the missing person, so the Trustees still have to account financially to him, but it would overcome the problem to allow the OP to sell his share and thus allow 'his' purchaser to be named in the register of title with the other flat owners?

(nb- I am not a solicitor)