Can the residents management company which I run, extend the leasehold for my flat?

[umshamrock]

Hi,

I own a flat in a building that is managed by a residents management company. I am also the company director. I want to sell the flat but there are only 69 years on the lease so I need to extend it. Can I extend my leasehold myself without using a solicitor? How is the best way to do this?
Thank you!

[theartfullodger]

Who or what is the freeholder please?

[AndrewDod]

You can't agree with yourself to do something that is to the detriment of the other shareholders. How are you deciding how much you are paying for the extension. Do all other flats have the same lease duration?

[Section20z]

Only the freeholder can grant a lease extension

[AndrewDod]

Only the freeholder can grant a lease extension

OP thinks he is the freeholder

[Section20z]

OP thinks he is the freeholder

Telepathy must be a wonderful gift

[Lorimer]

Is your RMC the freeholder of the building or is there a third party freeholder of the building?There will be a premium to be paid for your lease extension and this premium will have 'marriage value' added to it because your lease has less than 80 years remaining. You will need to instruct a solicitor to handle the lease extension and also a valuer. This is not a DIY job.

[umshamrock]

Hi,
Sorry I was unclear. The RMC is the freeholder of the building, which contains four flats owned by four different people. I am a director of the RMC, along with the other three owners. We all have 69 years left on our leases. Why would extending my lease be to the detriment of the other owners? Who charges the premium? How is that determined?
Thank you for your help,
umshamrock

[AndrewDod]

Telepathy must be a wonderful gift

It is.

OP, you can certainly agree unanimously with your fellow lessees that the extension could be at zero premium, but they would have the same right and would likely insist either that theirs is done at the same time, or that there is a resolution passed of the absolute right to do so in the future (if I were a fellow lessee I would not agree to that option as it might somehow be revoked later leaving them in a precarious position).

What you cannot do is act unilaterally as director agreeing with something that is in your own self-interest as lessee.

[umshamrock]

Thank you, AndrewDod. I wasn't implying that I was going to make a unilateral decision. What do you mean by insist theirs is done at the same time? It doesn't matter to me if they do theirs at the same time, does it? Or do you mean they can insist that I pay to extend their leases?

[Section20z]

There's not really a need because you will sell a "share of freehold" but you could all extend your leases at the same time while your solicitor is dealing with the sale.
Not something for you to do yourself.

[theartfullodger]

Hi,

I own a flat in a building that is managed by a residents management company. I am also the company director. I want to sell the flat but there are only 69 years on the lease so I need to extend it. Can I extend my leasehold myself without using a solicitor? ...................

No. No!

The RMC if it is the freeholder could do this, but you are not the RMC, different entity. I appreciate you are a director. Suggest you call a meeting of shareholders and directors using whatever the process is.

[sgclacy]

When your company acquired the freehold did you all pay an equal amount or was the price split according to the value and length of each lease

[umshamrock]

Thanks for the messages, all. We have notified the other directors to see if they would like to extend their leaseholds at the same time. We all own equal shares of the freehold and all of our leases expire at the same time, in 69 years. Everyone paid an equal amount when the company acquired the freehold. I have spoken to a couple of solicitors and have been told the freehold needs a different solicitor than the leasehold so we'll have to pay for two solicitors! This just seems crazy since we are only dealing with ourselves, and the three other owners who all work together regularly.

[Section20z]

Strictly speaking you don't have to be represented so you could appoint one solicitor to represent lessees jointly (to appease mortgagees).
I have granted lease extensions in the past as a freeholder without appointing solicitors.