Share of freehold

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    Share of freehold

    I recently purchased a property that has a share of freehold. I am the only director of the company. Someone from the block also wants to become a director. Do I just get a form from companies house and add them on?

    also as we now own the freehold do we no longer pay ground rent?

    #2
    You can download a form AP01 from Companies House and complete and post it or you can register to file information online.

    There is no need to pay yourself ground rent.

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      #3
      I would not be adding anyone as a director until I'm clear what does it mean.
      ​​​​​​who owns the freehold?

      Comment


        #4
        Best to give yourself a statutory 90 years lease extension at Nil extension cost ( only pay the legal costs )

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          #5
          You need to read your M&A to find out how directors can be appointed.

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            #6
            As a freeholder you have the right to charge ground rent but no obligation. As it is unclear who own what, I would think very carefully about who does what.

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              #7
              Originally posted by Section20z View Post
              You need to read your M&A to find out how directors can be appointed.
              ^^^ This.

              It may be that, as a director, you can appoint other directors without the other leaseholders having a say. However, the company articles might require new directors to be voted in by leaseholders.
              You also need to confirm that the person who wants to be appointed meets any requirements for being a director of the company.




              Originally posted by Anna1985 View Post
              As a freeholder you have the right to charge ground rent but no obligation. As it is unclear who own what, I would think very carefully about who does what.
              Why do you think that it's unclear who owns what?
              Unless there are problems with the leases, it should be clear enough what parts of the property are demised to leaseholders, with any remaining areas being the communal parts (if there are any). The leases should also make it clear what responsibilities individual leaseholders have, and what responsibilities the freeholder has.


              The members of the freehold company can choose to extend their leases and/or not to collect ground rent, even if it does remain part of the leases.
              If you do decide to extend leases the terms should be agreed by all members of the company - and if one or more cannot extend their lease immediately (perhaps because they can't raise the money for the solicitors fees) they should be given the opportunity to extend the lease at a later date on the same terms.

              Comment


                #8
                I agree that you should check that the member is eligible to become a director under the Articles and he/she is not disqualified to act. I also agree that you should check the Articles to ensure that directors may appoint other members as directors, It is also correct that the Articles may require directors to seek re-election. The members have the right to remove directors at a meeting of members.

                Comment


                  #9
                  Apologies in advance for this potential thread hijack.

                  Background;
                  Recently purchased half the freehold of a block of flats consisting of 3 Flats. Both myself and the person who owns the other half of the freehold are directors in our mini RTM company..

                  My question is now we own the Freehold for the building do we still need the RTM company?

                  Comment


                    #10
                    Originally posted by Nash762 View Post

                    Recently purchased half the freehold of a block of flats consisting of 3 Flats. Both myself and the person who owns the other half of the freehold are directors in our mini RTM company..

                    My question is now we own the Freehold for the building do we still need the RTM company?
                    The leaseholder of the 3rd flat should either be a member of or have the right to become a member of the RTM Company and you should not act in a manner which would be detrimental to that leaseholder.

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