RTM / Forming a Limited Company

lee636

Hi all,

Have a residents association meeting tonight with the other 5 owners of our building and need a bit of quick advice if possible:

We bought 1 of the flats in the building (6 flats in a converted Victorian building) on a freehold basis in November.

Currently 1 of the owners is a treasurer and handles the basics like arranging the painting of the building, hiring a (now ex) gardener etc.

When we bought our flat our solicitor mentioned that only a couple of the original owners names were on the paperwork and not all the current owners and we should look into forming a limited company to make things tidier and more ‘reliable’.

Does anyone have any information or experience of this?

Cheers

LandyAndy

I have formed limited companies online (although not for this purpose). It is a quick (about an hour max) and simple process. I presume the idea is that each owner would have shares in the company and those share would be transferred to a new owner when any flat was sold.

lee636

Hi Andy,

I think so yes (its something that will be discussed tonight) although i have heard it can be limited by guarantee instead of shares.

Richard_Webster

We bought 1 of the flats in the building (6 flats in a converted Victorian building) on a freehold basis in November.

If there is a lease for each flat and somehow you own a share in the freehold, there may be some point in a company - but the freehold would have to be legally transferred to it by whoever owns it. Are all the people in question whose names are presently on the freehold title available to sign such a transfer?

If the flats each literally have their own freehold title then I am not sure what a company is going to do improve things.

lee636

Hi Richard,

We have the freehold with a leasehold of 998 years. At the moment i assume that all others are the same. I believe that the couple of names on the actual title are contactable and shouldnt/wouldn’t object to signing.

At the moment getting anything done in respect of the building proves to be quite arduous and time consuming as the person currently position as the treasurer is very lacklustre to say the least. We were hoping that forming the company would mean a proper centralised point of contact that all building business would be managed through.