Acquiring freehold and deed of variation

kesm

Hi all,

Myself and two other flat owners of the 3 flat block are in the process of acquiring the freehold from the seller.

There is an outstanding item between myself and one of the flat owners which will need a deed of variation in the existing lease.
Can I please ask:

1) Do all 3 of us have to agree to acquire the freehold from the seller? i.e. can I say to the other flat owners that I do not want to acquire the freehold? If yes how will this affect them? Can they acquire the freehold by themselves?

2) When is the best time to do the deed of variation? Before we acquire the freehold or after?

3) We will all be directors with equal shares of a limited company that is already set up by the seller. Are we liable for the accounts and taxes of the seller when he was a director?

Many thanks all!

cattie

Yes the other 2 flat owners can acquire the freehold between themselves. I stand to be corrected but I believe as long as two thirds of the leaseholders agree, then they can buy the freehold of a block/building.

For full information on all aspects of obtaining the freehold etc. see here. You should find all the answers to any questions you have. http://www.lease-advice.org/publications/documents/document.asp?item=11

Jenniefour

kesm wrote: »

Hi all,

Myself and two other flat owners of the 3 flat block are in the process of acquiring the freehold from the seller.

There is an outstanding item between myself and one of the flat owners which will need a deed of variation in the existing lease.
Can I please ask:

1) Do all 3 of us have to agree to acquire the freehold from the seller? i.e. can I say to the other flat owners that I do not want to acquire the freehold?

Yes - but it's not clear why doing this would be to your advantage.

If yes how will this affect them?

They would have to raise, between them, the cost of a third of the purchase price. They will be the only two people with a vote on how, when etc. repairs and so on get carried out. Your input would be less, they would be the decision makers - although you would still have rights under your lease.

Can they acquire the freehold by themselves?

Yes, probably. Especially as it seems to be underway already. The only reason they might not be able to go ahead (unless they chose not to) would be because they can't raise the necessary funds as they would have to purchase what would have been your share between them.

2) When is the best time to do the deed of variation? Before we acquire the freehold or after?

3) We will all be directors with equal shares of a limited company that is already set up by the seller.

If you decided not to be one of those buying the freehold you would not be a Director or a shareholder. You could become a Director if they wanted this - but it would be entirely up to them. So if you're not taking on the same responsibilities - putting up the money, becoming a shareholder and Director - then you do not have the same rights. But you still have the rights as a leaseholder, as is in your lease.

Are we liable for the accounts and taxes of the seller when he was a director?

No - unless there is a prior written agreement to take on some liabilities, which is very unlikely in this scenario. Previous owner is responsible for their own accounts in any event.

Many thanks all!

See above - and take a look at the link from cattie

kesm

Hello,

Thanks but I have already reviewed this guide.
Could someone please provide me with answers to my qs.

Many thanks
Eirini

Blackbeard_of_Perranporth

kesm wrote: »

Hello,

Thanks but I have already reviewed this guide.
Could someone please provide me with answers to my qs.

Many thanks
Eirini

Yes, see a solicitor

cattie

kesm wrote: »

Hello,

Thanks but I have already reviewed this guide.
Could someone please provide me with answers to my qs.

Many thanks
Eirini

Looks to me as though Jenniefour has already done that :question:
!

kesm

Jenniefour wrote: »

See above - and take a look at the link from cattie

Thank you.

When is the best time to do the deed of variation? Before we acquire the freehold or after?

Also, we are picking up the company that the seller has created and we will now be the directors of it, not the seller. Will we
Are we liable for the accounts and taxes of the seller when he was a director?

AdrianC

kesm wrote: »

When is the best time to do the deed of variation? Before we acquire the freehold or after?

If you do it before, then the current leaseholder may demand payment for his time and efforts, in addition to any legal costs.
If you do it afterwards, it's less likely that'll be an issue.

It'll also make the purchase process quicker if you don't have to wait for that variation to be completed first.

Also, we are picking up the company that the seller has created and we will now be the directors of it, not the seller. Will we
Are we liable for the accounts and taxes of the seller when he was a director?

The company remains liable for the company's paperwork.
The individual remains liable for his personal paperwork.

Jenniefour

kesm wrote: »

When is the best time to do the deed of variation? Before we acquire the freehold or after?

Also, we are picking up the company that the seller has created and we will now be the directors of it, not the seller. Will we
Are we liable for the accounts and taxes of the seller when he was a director?

OP, I imagine the solicitor who is dealing with the purchase of the property will do the deed of variation at the same time - cost effective. Ask the solicitor.

See the answers I gave earlier re accounts.

OP, if you have changed your mind about being one of the people who purchase the freehold you need to let all relevant parties know now. It is unclear to me how far all this has progressed - but if it was your intention to be one of the people putting up the money to buy and you have changes your mind and no longer wish to do this then this changes a lot of things (see my original answer) and other relevant people need to know.

rpc

AdrianC wrote: »

If you do it before, then the current leaseholder may demand payment for his time and efforts, in addition to any legal costs.
If you do it afterwards, it's less likely that'll be an issue.

It'll also make the purchase process quicker if you don't have to wait for that variation to be completed first.

But, if majority voting within the company would be used to decide to grant the DoV then would the other two outvote OP given the chance?

Is the DoV more likely to be granted by the old directors or the new ones?

If there isn't' any difference then doing it after makes more sense to me.

AdrianC

rpc wrote: »

But, if majority voting within the company would be used to decide to grant the DoV then would the other two outvote OP given the chance?

Given that two of the three (OP inc) are involved in the DoV...