Letting lease expire on share of freehold property

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    Letting lease expire on share of freehold property

    Apologies if silly question - I`m sure there is a very simple answer...

    I`m curious as to what would happen in the above scenario where a person had a share of freehold in a block but let their lease expire. Would the flat then revert in ownership to the other shareholders, including the one who had let the lease expire?

    #2
    That would be my understanding.

    Hopefully this is a purely hypothetical question though, because no one should be stupid enough to let their lease get so low that it is anywhere near expiring.
    Or do you have a leaseholder who thinks that buying a share of freehold means that they own their property outright and the lease is unnecessary?

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      #3
      Thanks Macromia - pure curiosity rather than an actual situation thank goodness.
      I know that lots of people think share of freehold automatically does away with short leases but of course that's not always the situation.

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        #4
        That depends on the company articles or on the trust deed, if tenants on common.

        You might continue to own the share of the freehold, even though you had no leasehold interest in the flat, and couldn't legally, have possession of it.

        My articles say that membership of the company ceases if I cease to be a leaseholder, but that is a limited by guarantee company, and, with shares, you would need a clause requiring a forced sale of the share.

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          #5
          Thanks Leaseholder - that makes sense.

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