We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Extending a leasehold as a freeholder
herc182
Posts: 39 Forumite
Hi all
As a freeholder (one of three in a four flat block), we recently allowed extension of a leasehold to the fourth flat.
The fees rendered were not massive, but am I right in understanding that the fees generated are to be distributed amongst the freeholders and do NOT need to go back into the LTD company we created to manage the block? I.e. its a freeholder perk and we directly benefit financially from the leasehold extension?
thanks in advance, from a very inexperienced freeholder!
Note: we do not charge ground rent (when the freehold was bought, they made a bizarre decision not to charge ground rent!)
As a freeholder (one of three in a four flat block), we recently allowed extension of a leasehold to the fourth flat.
The fees rendered were not massive, but am I right in understanding that the fees generated are to be distributed amongst the freeholders and do NOT need to go back into the LTD company we created to manage the block? I.e. its a freeholder perk and we directly benefit financially from the leasehold extension?
thanks in advance, from a very inexperienced freeholder!
Note: we do not charge ground rent (when the freehold was bought, they made a bizarre decision not to charge ground rent!)
0
Comments
-
So you 3 own the freehold jointly and personally (i.e. the ltd company does not own the freehold)?
If this is the case then yes the income should hendivded equally (or in accordance with any partnership agreement or deed of trust you may have). Remember to investigate the tax situation.0 -
this is useful thank you. How do I know if the freehold is owned by us or the limited company?0
-
Go to the Land Registry and buy a copy of the freehold title for the block (it costs £3). That will tell you who owns it.0
-
The three of us have one share each in the LTD company and are freeholders. Surely we can decide to divvy up the cash as we like (even money that already exists in that account)? Our only obligation would be to maintain the block. Haven't gone to land registry yet, but will.0
-
The three of us have one share each in the LTD company and are freeholders. Surely we can decide to divvy up the cash as we like (even money that already exists in that account)? Our only obligation would be to maintain the block. Haven't gone to land registry yet, but will.
[FONT=Verdana, sans-serif]If the freehold was owned by the Ltd Co might you have to consider whether any corporation tax is payable if you made a capital gain on the part disposal?[/FONT]0 -
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.4K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.4K Work, Benefits & Business
- 599.6K Mortgages, Homes & Bills
- 177.1K Life & Family
- 258K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards