Owning share of Freehold & garden sale?

Gigervamp

If OP did sell the land, would the mortgage lender (if mortgaged) also need to agree to it?

tizzle6560

Gigervamp wrote: »

If OP did sell the land, would the mortgage lender (if mortgaged) also need to agree to it?

Thanks. Lender has already assessed the area in question and deemed it would not affect the overall property value and would be happy for me to proceed

Soundgirlrocks

tizzle6560 wrote: »

Thanks. Lender has already assessed the area in question and deemed it would not affect the overall property value and would be happy for me to proceed

So we are in a similar position in that we (residents management company) owns the freehold and we want to sell off part of the garden for development (slight difference here is that we all have equal access to the garden). All the leaseholders agree (as they are also the shareholders of the company)

There are various stages all with their own headache. You will need to amend your lease to reflect the smaller garden. The freeholder can then sell the garden and the profit either split between the shareholders (paid as a dividend) don't for get the tax implications - corporation tax / capital gains come into it as its a company trading.

As you all have equal shares the dividend would be split equally. But I suspect you will want a bigger slice of the pie as it's your garden you would be giving up, the only way to do that would be to agree some form of compensation from the freeholding company in exchange for surrendering your lease on that section of the garden.

You'll need a solicitor, as will the freeholding company. Unless you are talking mega bucks I can't see your neighbours wanting in on this scheme that will be complicated and a hassle for them, with very little return.

economic

since the garden is demised in your lease you should get a much bigger part of the money (assuming its a long lease). i urge you to get a surveyor to get a valuation done so you know how much value you are selling effectively. try get 2/3 surveyors and make sure they are only instructed by you and not the other leseholders. this means you have to pay for it.