Buying the freehold to 4 flats - only 1 flat wants to buy

Hoploz

Ideal!

I am now wondering whether you buy the company 'mr and mrs smith ltd' lock stock and your neighbours many never realise its changed hands! Lol

divadee

Hoploz wrote: »

Ideal!

I am now wondering whether you buy the company 'mr and mrs smith ltd' lock stock and your neighbours many never realise its changed hands! Lol

Ah yes that could be a way round it!!!!! And then the neighbours won't hate us hahaha

agrinnall

divadee wrote: »

Ah yes that could be a way round it!!!!! And then the neighbours won't hate us hahaha

Although if you really gouge them they could easily find out that you are the owners, and they'll know just where you live.

divadee

UPDATE

The freeholder called us this morning (they have our number as they were brilliant vendors when we bought and we have stayed in touch).

They have offered us the freehold without going through the other flats as they have had unofficial chats with the other owners and none of them are interested/have the money to go in for a share of the freehold.

So to save time (they want the cash for an ongoing purchase) they are willing to sell us the 'ltd company' to us lock, stock and barrel and then resign from the company and we take it over. This will save legal fees for us as it is a business purchase they have to pay their own legal fees, whereas if we go down the statutory route we would have to pay their legal fees as well. They just don't want to wait that long to sell! If they go the statutory route they have I give all leaseholders 3 months to decide apparently.

Is there risks to us going this route? Are we being stupid? We want the freehold anyway, so this way it's quicker for all parties.

marksoton

divadee wrote: »

UPDATE

The freeholder called us this morning (they have our number as they were brilliant vendors when we bought and we have stayed in touch).

They have offered us the freehold without going through the other flats as they have had unofficial chats with the other owners and none of them are interested/have the money to go in for a share of the freehold.

So to save time (they want the cash for an ongoing purchase) they are willing to sell us the 'ltd company' to us lock, stock and barrel and then resign from the company and we take it over. This will save legal fees for us as it is a business purchase they have to pay their own legal fees, whereas if we go down the statutory route we would have to pay their legal fees as well. They just don't want to wait that long to sell! If they go the statutory route they have I give all leaseholders 3 months to decide apparently.

Is there risks to us going this route? Are we being stupid? We want the freehold anyway, so this way it's quicker for all parties.

Woah! They're spinning you a yarn. They cannot circumnavigate the other flats. They HAVE to offer if to the other freeholders. No if's or but's.

You're potentially opening yourself to a world of excrement. And a contract worth jack.

divadee

marksoton wrote: »

Woah! They're spinning you a yarn. They cannot circumnavigate the other flats. They HAVE to offer if to the other freeholders. No if's or but's.

You're potentially opening yourself to a world of excrement. And a contract worth jack.

This was our concern. Thanks will have to get advise from a solicitor tomorrow morning I think.

divadee

We have had forwarded an email from their solicitor advising that this is above board for the following

"Whilst the legislation requires you to give a first right of refusal if you sell the freehold to the tenants collectively, in this instance, you have a separately incorporated limited company in which you are the sole shareholders. You are therefore quite entitled to sell your shares in that company, appoint new directors and resign, thereby effectively giving ownership and control to your purchasers, whilst maintaining the same identity of landlord for the block as currently exists."

This kind of makes sense to my possibly naive brain!!!

marksoton

divadee wrote: »

We have had forwarded an email from their solicitor advising that this is above board for the following

"Whilst the legislation requires you to give a first right of refusal if you sell the freehold to the tenants collectively, in this instance, you have a separately incorporated limited company in which you are the sole shareholders. You are therefore quite entitled to sell your shares in that company, appoint new directors and resign, thereby effectively giving ownership and control to your purchasers, whilst maintaining the same identity of landlord for the block as currently exists."

This kind of makes sense to my possibly naive brain!!!

I don't consider you naive.

But i sure as hell wouldn't get involved with these shady characters. They clearly have liquidity problems and just want your cash.

divadee

marksoton wrote: »

I don't consider you naive.

But i sure as hell wouldn't get involved with these shady characters. They clearly have liquidity problems and just want your cash.

They have been quite honest about that. They sold the flat to move away to a different area and want the cash so they can put a bigger deposit down. If anything they are being more honest than we expect!!

Freecall

marksoton wrote: »

..... wouldn't get involved with these shady characters.

Why 'shady characters'?

Shareholders (or more commonly members, if limited by guarantee) of freehold companies change all the time - usually when flats are sold or transferred.

The OP needs to check that the Articles of Association permit such a transaction but there is certainly no need to make an offer for sale to other leaseholders unless they are intending to purchase the freehold directly from the company.