Purchase of lease - help needed

g1ose

Hi all

I currently own a flat in a converted house. There are 4 flats in total and we all pay a management company for service and ground rent. The current freeholder has asked the management company to redecorate as it's been a while (fair enough) but the management company seem less than keen to provide any information they don't legally need to and this makes me concerned as already the service charge is extremely high for the property.

I'm looking at reaching out to the other owners to see if they would be interested in joining me and taking back the freehold and owning the freehold shares equally.

The questions I have are:
As I understand it if I can convince one of the other owners to do this we should be allowed. (50%)
If I do and we pay our dues for the freehold. What happens to the other 2 owners? Do we have to pay theirs if they refuse? If not how is the ownership worked out?
Can the freeholder block this anyway?
If we start this process can we stop the current works from happening?

Many thanks for your help in advance.

anselld

Suggest you start by getting the terminology right or it will be very confusing.
The four flat owners are "leaseholders".
The freehold is owned by the "freeholder".
The management company works for the freeholder but is funded from the service charges paid by the leaseholders.

What is it you want decorated? Communal areas?

Edit: OP now edited with correct terminology, thanks.

g1ose

OK thanks.

I actually don't want anything decorated at this stage, the management company are trying to force through a full external decoration of the property just because 'its been a while' rather than it needs it.

This has led me to start looking at taking the freehold over to manage it myself with other owners.

I want to take over the freehold, but I'm unsure what happens in the process.
For example, if I can convince only 1 other leaseholder to go in, I understand I can progress this, but does that mean we own it 50/50 and if so what happens to the other 2 leaseholders?
If I have to pay say £3k for the purchase of the freehold, and the other owner also does, do we then have to pay off the other 2 owners share of the freehold?

Thanks

TrickyDicky101

Have you read this
http://www.lease-advice.org/publications/documents/document.asp?item=11

It outlines the process. You and the other leaseholder would buy the entire freehold so if valued at £3k per flat and there's 4 flats that would be £12k in total.

G_M

Are you sure it is the frehold you want to take over (buy), or management of the building?

Read all the relevant pages in the link trckydicky has posted above.

g1ose

Thanks TrickyDicky101, thats useful, I had struggled to read that document and pinpoint the fact that indeed the full cost would be shared between the active parties. Does that also mean then the ownership of the freehold would be 50/50 as apposed to 25% each?

G_M I think both, although the management would be a good start, the freehold would add value to the property come the time to sell.

Thank you

shopbot

How many years left have you got on the Lease? Buying the Freehold can be very expensive. A cheaper option is to extend it by another 99 years.

SB

G_M

g1ose wrote: »

OK thanks.



I want to take over the freehold, but I'm unsure what happens in the process.
For example, if I can convince only 1 other leaseholder to go in, I understand I can progress this, but does that mean we own it 50/50 and if so what happens to the other 2 leaseholders?
If I have to pay say £3k for the purchase of the freehold, and the other owner also does, do we then have to pay off the other 2 owners share of the freehold?

Thanks

There are currently 6 different legal entities:
* 4 leases (owned by the 4 flat owners)
* 1 freehold (owned by a company, or Jo Bloggs, or anyone)
* 1 management company

If the freehold is going to cost, say, £12K to buy, and only 2 people wish to buy it, then
* they will pay £6K each and
* they will own 50% each

The buyers in this case seem to be 2 of the leaseholders, but that is not necessary. It could be anyone. After the deal there will still be 6 legal entities

* 4 leases (unchanged
* 1 freehold (now jointly owned by 2 people - presumably 2 of the leaseholders)
* 1 management company (unchanged