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

divadee

Freecall wrote: »

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.

Sorry to sound dumb! This is all very very new to us but can I ask what you mean by articles of association?

And is it common to purchase the shares in the existing freehold company and then the sellers resign and we take the business over?

Stuart788

Personally I think the goodwill you'll maintain by not buying the freehold is worth more than the business opportunities of a freehold. Regardless of whether you're "fair," will your neighbours see it that way?

marksoton

Freecall wrote: »

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.

I wouldn't care. If you wish to conduct your business that way fine. I'd want no part. What over 5h1t are they trying to pull?

divadee

Stuart788 wrote: »

Personally I think the goodwill you'll maintain by not buying the freehold is worth more than the business opportunities of a freehold. Regardless of whether you're "fair," will your neighbours see it that way?

We aren't doing it just for business. We are doing it so a random private company doesn't take the freehold and rack up the service charges to unmanageable level for us!! This way we have control over these things. We can extend our own lease at any time. We can now have control of the loft in our flat (we are the only ones with access but it is not part of our demise at the current time). We can extend into the loft or just use it for storage all without freeholders permission.

divadee

marksoton wrote: »

I wouldn't care. If you wish to conduct your business that way fine. I'd want no part. What over 5h1t are they trying to pull?

I honestly just think they want it gone and are actually being nice rather than selling it to some freehold company that will screw us over on service charges etc....

Stuart788

divadee wrote: »

We aren't doing it just for business. We are doing it so a random private company doesn't take the freehold and rack up the service charges to unmanageable level for us!! This way we have control over these things. We can extend our own lease at any time. We can now have control of the loft in our flat (we are the only ones with access but it is not part of our demise at the current time). We can extend into the loft or just use it for storage all without freeholders permission.

I understood that but regardless of your good intentions you'll still upset your neighbours. What if all four flats set up a limited company put in 5k each and manage it together?

divadee

Stuart788 wrote: »

I understood that but regardless of your good intentions you'll still upset your neighbours. What if all four flats set up a limited company put in 5k each and manage it together?

That was the original plan but no other flats are interested. Only one is an owner occupier and they can't afford it. The others are rented and the landlords aren't interested either. So it really is only us. This happened when the current freeholders bought the freehold a few years ago. They were the only ones interested then as well.

Stuart788

If they really can't afford it how do you know they'll be able to pay you?

enginesuck

Buy it, get a solicitor to make sure its all above board, don't worry about the Moral side of it, if you want to be moral just charge a fair amount to your leaseholders. You have a fortunate opportunity seize it ! You know someone else will if you don't.

Stuart788

Apologies if I am sounding too negative. I completely understand why you want to do this but my own experiences have taught me that sometimes it's worth paying a bit more (i.e unfair service charges) than risking alienating your neighbours. Because no matter how nice and decent you are it's human nature to gang up on the guy asking them for a service charge. Also you don't actually really need it as you're the only one of the four that doesn't need to desperately extend their lease.