Lease extension by leaseholder-owned FH company

[lek28]

I am a director of the freehold company of my building, and we are looking at extending the leases of freehold members to 999 years.

As we already own the freehold, there's nothing commercial to negotiate as we can just charge ourselves a £1 premium; however, the extensions will still need to be documented.

Is there a DIY way to do this ourselves, or do we really need to engage solicitors?

Thanks.

[leaseholdanswers]

While yes, as lenders will need to be involved for those that have mortgages, they are unlikely to accept a DIY deed of variation.

At this time it worth thinking about the terms of the lease especially if the costs and expenses of the company aren't recoverable as service charge eg Directors and officers Insurance ( they often aren't as they are often drafted on the basis that the freeholder is not a residents group or company) and modernising clauses.

[sgclacy]

When you purchased the freehold how was the purchase price allocated amongst the participators?

If evenly then you need to be careful on the granting of the leases as those with shorter leases and more expensive flats or with higher ground rents could gain over those with longer leases or with smaller ground rents. Therefore there will need to be a compensatory payment between lessees

If the purchase price was apportioned amongst the lessees on the same ratio as the relative costs each lessee would have to pay for a statutory lease extension then you can all proceed with granting yourselves 999 year leases with a peppercorn rent all for a pound each

For flats which are subject to a mortgage consent will need to be obtained first from the mortgagees and a solicitor will have to be instructed