Do I need a solicitor for freehold purchase?

Rebbage999

Hello.

I have occupied a flat for 15 years and would like to buy a share of the freehold. The freeholder is perfectly fine with this and we have agreed a figure. They are getting a solicitor to deal with everything and the advise appears to be that I should get one as well but hop important is this given that I don't need any surveys and I already know and trust the freeholder? Solicitors fees significantly increase the overall expense.

Thanks for any advise.

Dave.

ACG

If you need a mortgage - yes.
If you do not need a mortgage - no.

But there will be a lot of work involved and although you may trust the freeholder, would you not want to know if they are going to build a prison over the road or put a motorway 100 yards away? It is worth getting some of the searches done.

PasturesNew

If you do it and make a tiny error/c0ck up ... then it could prevent you selling it at a price you're happy with in the future.

You won't know what you've done wrong until a buyer's solicitor shouts "Oi, what's this?" and your buyer pulls out.

I knew a solicitor who had a solicitor do theirs, they simply said "then I have somebody to sue".

Rebbage999

Thanks for the reply. There is no mortgage involved. I'm just giving Mr Upstairs some of my money to get my name on the freeholder list in effect.

I still own 85 years of lease so the hit to the value of the freehold by prison/motorway is dwarfed by the existing value of the lease (and will probably be less than the cost of the solicitor unless they start burying nuclear waste next door). I have the searches from when I bought the lease and I'm happy with that. My main concern is whether there is something extremely important that I will need to do when I won't know I have to.

SallyDucati

You may well trust the freeholder, but they are getting a solicitor who will be looking after only the freeholders interests, not looking at it from your side.

I would always want to get a solicitor to do this kind of thing for me.

G_M

Pevious comments are sound.

However there is no obligation to use a solicitor. The seller's solicitor will almost certainly recommend you use one - he has a professional duty to advise you of that. He may also want you to put in writing that you understand his advice and have chosen to ignore it. That would be to cover his professional a*se!

To be honest, as long as the Title is transfered properly to the new joint names via form TR1, and the agreed money changes hands, I don't see a problem.

There are various books, possibly available free at your library, covering the topic. eg


https://www.amazon.co.uk/Which-Guide-Conveyancing-Consumer-Guides/dp/085202813X?SubscriptionId=AKIAILSHYYTFIVPWUY6Q&!!!!!duckduckgo-ffsb-uk-21&linkCode=xm2&camp=2025&creative=165953&creativeASIN=085202813X

eddddy

Rebbage999 wrote: »

I have occupied a flat for 15 years and would like to buy a share of the freehold. The freeholder is perfectly fine with this and we have agreed a figure. They are getting a solicitor to deal with everything and the advise appears to be that I should get one as well but hop important is this given that I don't need any surveys and I already know and trust the freeholder? Solicitors fees significantly increase the overall expense.

"Buying a share of the Freehold" isn't really a legal concept.

• I guess you mean that you and the other person will become joint owners of the freehold?

• Or are you forming a company to own the freehold, with you and the other person will own a share in the company?

Does the other person own a leasehold flat in the same building?

Why are you doing this?

• Is it so that you have a greater say in building repair/maintenance decisions?

• If you and the other person can't agree on repair/maintenance matters, how will you resolve them? (e.g. The other person wants the windows repaired, but you don't think it's necessary.)

• Will you have a deed of trust that says what happens in those circumstances?

A solicitor could help with 2 things:

• Doing the paperwork to make you a joint owner of the freehold

• Advising you on the pros and cons of joint ownership, and advising you on what measures you should take

Perhaps it's the second point that's more important for you.

Tom99

Are you going to become a joint freehold owner, with the beneficial interest as tenants in common specifying your %age share of the freehold?
How many flats in the building?
Remember you will become landlord of all the flats so its worth checking all the lease details, not just of your flat, to make sure there are no expensive freeholder obligations.
Will the other freeholders allow you to extend your 85yr lease, if so at what cost? Despite owning a share of the freehold you still only have an 85yr lease to sell and that is very close to where many purchasers will start to worry/discount the price etc.

Rebbage999

Thanks for all of the feedback.

There are only two properties, mine and the freeholder's. I mostly occupy my flat and he lets his. I think that we may need to address the formation of a company that we jointly own.

Part of our agreement is the extension of the lease to 999 years.

The reason I'm doing this is primarily to have control over maintenance. The existing freeholder has been good but he will probably sell up in the foreseeable future and I would be at the mercy of a new freeholder unless I obtain a seat at the metaphorical table. Plus it will (probably) increase the value of my flat if and when I sell up.

I have requested a some quotes for solicitors. It looks like it'll be around £1000 for just the freehold and lease extension work. I imagine it will be more if there is a trust agreement and company formation as well.

Tom99

Rebbage999 wrote: »

Thanks for all of the feedback.

There are only two properties, mine and the freeholder's. I mostly occupy my flat and he lets his. I think that we may need to address the formation of a company that we jointly own.

Part of our agreement is the extension of the lease to 999 years.

The reason I'm doing this is primarily to have control over maintenance. The existing freeholder has been good but he will probably sell up in the foreseeable future and I would be at the mercy of a new freeholder unless I obtain a seat at the metaphorical table. Plus it will (probably) increase the value of my flat if and when I sell up.

I have requested a some quotes for solicitors. It looks like it'll be around £1000 for just the freehold and lease extension work. I imagine it will be more if there is a trust agreement and company formation as well.

Is there already a long lease in place for the other flat? If not it would be best to set up one now otherwise you would need a complicated deed of trust in place to prevent you, as joint freeholder, from claiming a share of the rent the other freeholder is getting from their flat.
When the freeholder comes to sell there is nothing stopping them selling the long lease of their flat but selling their freehold interest to you so that you would then be the sole freeholder.

VincentVincent

Rebbage999 wrote: »

Thanks for all of the feedback.

There are only two properties, mine and the freeholder's. I mostly occupy my flat and he lets his. I think that we may need to address the formation of a company that we jointly own.

Part of our agreement is the extension of the lease to 999 years.

The reason I'm doing this is primarily to have control over maintenance. The existing freeholder has been good but he will probably sell up in the foreseeable future and I would be at the mercy of a new freeholder unless I obtain a seat at the metaphorical table. Plus it will (probably) increase the value of my flat if and when I sell up.

I have requested a some quotes for solicitors. It looks like it'll be around £1000 for just the freehold and lease extension work. I imagine it will be more if there is a trust agreement and company formation as well.

For only around £1k it's a no brainer for me; hire a solicitor. The peace of mind in knowing (in theory) everything will be done correctly and professionally is worth it.