Buy Your Freehold - guide discussion

superlative

Hang on, I'm a bit confused, SK Patel is saying the company that buys the freehold is usually a share holder company, but Property Man is saying it needs to be a company limited by guarantee?

We are a company limited by guarantee. I will take a look at our articles.

superlative

Sorry edited my answer above, as I hadn't seen SK Patels answer before I wrote it.

propertyman

superlative wrote: »

Hang on, I'm a bit confused, SK Patel is saying the company that buys the freehold is usually a share holder company, but Property Man is saying it needs to be a company limited by guarantee?

We are a company limited by guarantee. I will take a look at our articles.

RTM companies are limited by guarantee and the law requires that enfranchisement companies are also limited by guarantee. However where it is negotiated it is invariably better to use a share company.

propertyman

superlative wrote: »

Sorry edited my answer above, as I hadn't seen SK Patels answer before I wrote it.

You need to read #81 and #84......:cool:

SKPatel

So far as i am aware, the part of the legislation that requires a company to be limited by guarantee has not yet come into force. So for the moment, the participants can choose either form of company.

propertyman

I'd check the commencement orders but I dislike pain and losing the will to live.:D

Few pay attention to it as unless all participate it presents problems for the company when it comes to lease extensions and income etc.

Thats why I also suggested enfranchising and winding up the RTM as that's easier, cost wise, than rewriting the articles.

WazzaD

Hi all,

I have a ground floor leasehold flat in a converted house - 2 flats total. The ground rent is minimal (£15) and lease length 950 years. I'd like to investigate extending the flat but am worried the freeholder may slap a hefty charge on any works done. Can they do this? What are my best options?

Also, if I was to want to buy the freehold, does the flat owner upstairs need to be involved? So far he has shown little interest when I've discussed with him

Thanks

WazzaD

Hi all,

I have a ground floor leasehold flat in a converted house - 2 flats total. The ground rent is minimal (£15) and lease length 950 years. I'd like to investigate extending the flat but am worried the freeholder may slap a hefty charge on any works done. Can they do this? What are my best options?

Also, if I was to want to buy the freehold, does the flat owner upstairs need to be involved? So far he has shown little interest when I've discussed with him

Thanks

WazzaD

Hi all,

I have a ground floor leasehold flat in a converted house - 2 flats total. The ground rent is minimal (£15) and lease length 950 years. I'd like to investigate extending the flat but am worried the freeholder may slap a hefty charge on any works done. Can they do this? What are my best options?

Also, if I was to want to buy the freehold, does the flat owner upstairs need to be involved? So far he has shown little interest when I've discussed with him

Thanks

SKPatel

WazzaD wrote: »

Hi all,

I have a ground floor leasehold flat in a converted house - 2 flats total. The ground rent is minimal (£15) and lease length 950 years. I'd like to investigate extending the flat but am worried the freeholder may slap a hefty charge on any works done. Can they do this? What are my best options?

Also, if I was to want to buy the freehold, does the flat owner upstairs need to be involved? So far he has shown little interest when I've discussed with him

Thanks

Hello!

You will need the freeholder's consent in order to extend and it is likely you will be charged for this consent. It is also likely that you may be asked to pay a premium if you are seeking to acquire more space to include as part of your flat.

As to acquiring the freehold, yes you will need your neighbour to participate in order to exercise your right to buy the freehold. If he has a long lease then there may be little incentive for him to participate.

Good Luck!