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Advice about using Ltd company for freehold
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rbarker98
Posts: 1 Newbie
First post so please be gentle!
I own one of four flats in a converted house. The freehold of the house is owned by a LTD company and the four flat owners are equal shareholders and Directors. We each have leases of equal length.
For years we have managed the property (maintenance, repairs etc) without routing any money or payments through the company. We simply agree any works collectively and then pay our share.
The Ltd company had a business bank account but that was closed recently by the bank due to a lack of activity. We have no desire to set up another one - it only ever racked up fees. Administering the Ltd company is generally a pain and isn’t used for anything beyond the freehold ownership. We have been told a declaration of trust could be an alternative way to set things up.
Are there any advantages to holding the freehold in a Ltd company?
What are the common alternatives to our present arrangement that would maintain the shared freehold ownership status and make sure each owner acts fairly.
If there is a credible alternative, what is the procedure to move from one arrangement to the other?
Any thoughts or opinions would be gratefully received! Thank you.
I own one of four flats in a converted house. The freehold of the house is owned by a LTD company and the four flat owners are equal shareholders and Directors. We each have leases of equal length.
For years we have managed the property (maintenance, repairs etc) without routing any money or payments through the company. We simply agree any works collectively and then pay our share.
The Ltd company had a business bank account but that was closed recently by the bank due to a lack of activity. We have no desire to set up another one - it only ever racked up fees. Administering the Ltd company is generally a pain and isn’t used for anything beyond the freehold ownership. We have been told a declaration of trust could be an alternative way to set things up.
Are there any advantages to holding the freehold in a Ltd company?
What are the common alternatives to our present arrangement that would maintain the shared freehold ownership status and make sure each owner acts fairly.
If there is a credible alternative, what is the procedure to move from one arrangement to the other?
Any thoughts or opinions would be gratefully received! Thank you.
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