Buying share of freehold

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    Buying share of freehold

    Last year I extended the lease of a flat I own in a block of 5 flats by a further 90 years at peppercorn rent. I now have a total of 163 years unexpired.

    The leaseholders of 2 other flats in the block have recently approached me to see whether I would be interested to buy a share of the freehold with them. They have not extended their lease as I have done for my flat.

    I am told that the premium I would have to pay to buy my share of the freehold should be minimal based on the fact that I extended my lease last year and I have a total of 163 years unexpired, which is obviously quite a lot. Is this true or will I be required to pay the same premium as the other 2 leaseholders who have not extended their lease?

    #2
    Broadly peaking that is correct; the value of the freehold is i part the right to sell extensions to leaseholders, whic in your case is quite low.

    I would suggest that you all agree, including you that on completion you

    a; all leases are 999 years
    b; that the leases are all amended to ensure that the freeholders expenses and costs are recoverable under the service charge.

    It is essential that it is owned by a company so that when you sell your interest in the freehold is easy transferred and that you have mechanism to make decisions between you.
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

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