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

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    #16
    The freeholder doesn't need a solicitor. But I strongly suggest that you get unanimous agreement and extend the whole lot equally.

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      #17
      I would suggest you could proceed by :

      1. Getting valuation for your flat from 2 or 3 estate agents who might be appointed to sell your flat based on ( a) 69 years lease ( as now) and (b) 159 years lease at Peppercorn GR after statutory 90 year lease extension. There may show 10% difference in value. .

      2. Getting quotes from 2 or 3 solicitors for lease extension work for ( a) one flat to 159 years lease only and ( b) all 4 flats extended at same time. Based on changing the existing lease from 69 years to 159 years ( or longer to 999 years lease ) and no premium charged for lease extension. Assume 1 solicitor can be found willing to act for both sides due to Nil Premium ).

      3. The difference in price ( between 69 years and 159 years ) will be around 10%, Say £10K

      4. The solicitor costs may be quoted at £750 ( one flat) and £2000 ( 4 flats at same time ) - I am guessing figures.

      5. When the lease falls below 70 years, its difficult to get a mortgage. So should be easy to get agreement for all to extend together.

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        #18
        Originally posted by umshamrock View Post
        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.
        The company can indeed grant you a 999 years lease at a peppercorn but at the same time must grant an option to the other three lessees giving them the right to call for a lease extension on the same terms. That option must be capable of registration against the freehold title and your solicitor will need to draft it and register it against the title

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          #19
          Are you still paying ground rent under the terms of your lease, even though you also own a share of the freehold? Assuming there are several shareholders, then you as a director seem to have a conflict of interest, especially as the length of the lease might create marriage value. I would suggest another director to deal with this on behalf of the freehold company, involving an independent surveyor to determine the fee and then get shareholder agreement in an Extraordinary General Meeting (EGM). You seem conflicted in this scenario to act in the best interest of the majority of shareholders.

          We are setting up a freehold company, and anticipate a comparable scenario, where we even consider issuing different classes of shares, to ensure a leaseholder does not have a vote when it comes to the premium to extend his own lease.

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