Freehold flat with a short lease

eddddy

NameUnavailable said:

What about forming a Ltd company and putting the freehold in the company's name. Would that allow one to extend their lease (as the freehold is owned by the Ltd entity).

Yes - that would work.

JaneHop

eddddy said:

NameUnavailable said:

What about forming a Ltd company and putting the freehold in the company's name. Would that allow one to extend their lease (as the freehold is owned by the Ltd entity).

Yes - that would work.

It is something we can suggest to the vendor's solicitor, right ? 

eddddy

JaneHop said:

eddddy said:

NameUnavailable said:

What about forming a Ltd company and putting the freehold in the company's name. Would that allow one to extend their lease (as the freehold is owned by the Ltd entity).

Yes - that would work.

It is something we can suggest to the vendor's solicitor, right ? 

It's more likely something you would do, rather than the vendor (if you want the freehold to be owned by a company.)

i.e. You and/or your husband form a company - e.g.  called Hop & Hop Limited - and Hop & Hop Limited buys the freehold of the building.

And you and your husband buy the Leasehold flat (as two individuals - not as a company)

Then there's no problem with granting a lease extension


But then there are a lot of considerations for a company owing a freehold - some might be good, some might be bad.

JaneHop

Hello again! surprise surprise, we still have not finalised the purchase. Long story short, the lease problem has not yet been resolved, but the seller's solicitors proposed the below:

Can we suggest the following in terms of dealing with the lease extension. We can deal with it for our client if we can agree to the following –  When you submit your application to the land registry it will need to be done in a particular order to deal with the issue of our client not being able to extend the lease from herself to herself. We can draft the lease extension for you to approve. We will have 2 separate TR1’s one for the leasehold and one for the freehold – both title numbers will be on the contract. With your application to register it will need to be the leasehold transfer first, then the lease extension and then the transfer of the freehold.

What do you think about this? Does this make sense at all?

Our solicitor is not keen on this solution (she's not keen on this purchase generally but that's a different story) and says that Land Registry might not accept this extension.