Forced Sale Of Part of Freehold Property

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    Forced Sale Of Part of Freehold Property

    Hello
    Can anyone help with a query please?
    I own a share of the freehold of the grounds where I own a flat. The freehold is shared between about 100 flats. We manage the communal areas via a company which we formed and to which we elect directors to make the day to day decisions. Recently a developer has offered us money to buy part of our grounds. My question is can this sale be done with a majority vote of the freeholders or can any individual freeholder block the sale by not agreeing?
    thanks very much

    #2
    The shareholders decide in this instance.

    You put it to the vote to the 100 shareholders.

    But, what does the lease say about the land, sale, or "not to build on any part or errect any buildings"

    What is the developer going to put there ? a car park, and office block ?
    They don't buy land just to leave it there, vacant.

    If the lease implies anyone can walk accross and have use of the common grounds, do you have
    £ 30,000 to change all 100 leases to show the reduced size of their entitlement ?

    Comment


      #3
      Well no, as a company its for the board to decide, but they can, or be asked or required, by shareholders /members to put it to a vote.

      that said if your leases include unalterable(inalienable)rights to use the area, then each leaseholder would have to agree.

      besides there is no such thing as share freehold, the company owns it, you own a share in the company, nothing else.
      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.

      Comment


        #4
        Thanks very much for your reply leaseholdanswers.
        I'm sure you're right about owning a share of the company only. We are having a members vote on the issue in this case rather than leaving it to the elected board. I certainly will check through the lease.

        Comment


          #5
          Thank you very much for your answer Ram.
          I suspected a majority would do but it's a pity as I don't want the trees and wildlife to be harmed. (A majority is democratic of course). The land will be used as a driveway for a new apartment complex next door to our site.
          I will look into the details of the lease just in case. We have lovely grounds and it's a real shame that people don't appreciate them more or want to show solidarity with the people who live in that part of the site. (Luckily I don't live in that area myself). I suspect everyone will regret the sale soon enough but for now most people seem to think the money is worth it.

          Comment


            #6
            Sorry but yes I am right no such thing as SoF, leasehold freehold and commonhold, that its.

            The lease is absolutely key here, the company is bound by its 100 contracts, leases. if only one leaseholder says my lease says I have the clear and unalterable right to use that land, its scuppered or the company ends up writing a big cheque to that person. Expect others to forma an orderly queue for a similar cheque.

            One tip is if it goes ahead, then you pay tax on the sale. A builder developer might be better off asked to do work say the new roof or drive or external painting instead, tax free.
            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.

            Comment


              #7
              Thanks very much leaseholdanswers
              That's a good tip about the builder doing work to avoid tax. Ill suggest that as a way for part of the money to be paid if it does end up happening. As yet I still hope to persuade people nature and tranquility has a value.
              cheers
              MrTea

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