Buy Your Freehold - guide discussion

SKPatel

Hello!

Yes is would!

af2909_2

SKPatel wrote: »

Hello!

Yes is would!

Thanks for your help - I spoke to LEASE today, they suggested that I should ask the surveyor about valuations under both LRA (2002) & LLTA (1987) - we shall see where we go

af2909_2

af2909 wrote: »

Thanks for your help - I spoke to LEASE today, they suggested that I should ask the surveyor about valuations under both LRA (2002) & LLTA (1987) - we shall see where we go

Just a quick query - if we use the landlord and tenant act do we still need to form a company as per collective enfranchisement (2002 act)?

Thanks

SKPatel

Its not compulsory to form a company under either of those two Acts.

af2909_2

SKPatel wrote: »

Its not compulsory to form a company under either of those two Acts.

My understanding of CE is that the 2002 act states that "1 person" must acquire the freehold and as such the only way for multiple people to acquire it was via a company as this is classed as an individual.

So what you are saying is the four of us (me & my better half + couple who own upstairs flat) can apply as a group without the need to set up a company?

Thanks for the help :beer:

SKPatel

You don't need to form a company but you may wish to do so for admin reasons.

I would suggest you seek appropriate legal advice as the process is not simple to understand.

Good luck!

propertyman

af2909 wrote: »

My understanding of CE is that the 2002 act states that "1 person" must acquire the freehold and as such the only way for multiple people to acquire it was via a company as this is classed as an individual.

So what you are saying is the four of us (me & my better half + couple who own upstairs flat) can apply as a group without the need to set up a company?

Thanks for the help :beer:

Its actually under the 93 Act and it is a nominee purchaser who would be (Mr/Mrs/Miss) A+B+C+D. The advantage of a company is that there are readily understood ways to manage these, and if there are leases to be extended or other assets or income, then dont use the RTE company but a limited company as the former is limited in making a profit and disbursing that.

Even if you buyin in person, be careful, thought must be given to how that group will manage itself through a declaration of trust or partnership agreement- disputes or stalemates occur. That why the company has advatages as its ready made.

When extending the lease which you must do make sure that the service charge provisions are updated to include the freehold company or group's expenses of operation as older leases were never drafted to do this.

The advantage of the 87 Act is that the valuation basis is more tenant friendly that the 93 Act.

Very often ground rents will be eliminate dhowever pause for thought, in the future large and unplanned expenses may arise and the sale of the freehold might produce a large lump of needed cash( control can be retained in various ways). The freeholder's can agree year to year not to levy it until that rainy day comes and they sell up.

af2909_2

propertyman wrote: »

The advantage of the 87 Act is that the valuation basis is more tenant friendly that the 93 Act.

Update - spoke to the surveyor who said she hasn't actually used the 87 act for valuation purposes, but she'll look into it :eek:

Without wishing to seem too cheeky, what exactly makes the 87 act more tenant friendly in terms of acquisition?

Thanks for your help :beer:

propertyman

Pay me my usual £240 per hour plus VAT and I'll tell you ! Its enough that I have tipped off your qualified valuer ( who really ought to know about it....)

af2909_2

propertyman wrote: »

Pay me my usual £240 per hour plus VAT and I'll tell you ! Its enough that I have tipped off your qualified valuer ( who really ought to know about it....)

Fair point - thanks for the previous advice :beer:

Would LEASE be able to advise me (given that they told me it was 1987 s3)?

Sorry for being such a tight git