Best legal framework for two co-freeholders post-enfranchisement? Deed of trust?

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    Best legal framework for two co-freeholders post-enfranchisement? Deed of trust?

    I live in one of two leasehold flats in a house, freehold of which is currently owned by a third party.
    Myself and the other leaseholder are hopefully on the verge of buying the freehold.
    There is only one shared area - a small hallway.
    It seems unnecessary that we set up a company for the subsequent management of the property post-enfranchisement, as occurs with block of flats etc.
    But I have read conflicting advice on the best legal arrangement for two co-freeholders in a property.
    A deed or declaration of trust seems to be one option.
    Is this even necessary? If we are extending our leases, and in my case altering my lease to clarify my demise over the lost space, can we not write our respective responsibilities into the leases?
    Is there a better option than a deed / declaration of trust?
    If we do opt for a deed of trust, will a decent property lawyer know what needs to be in the there, or is it up to us to instruct?
    Thank you.

    #2
    A company is over the top for two flats.

    A deed of trust is needed as it can, as it were, solve problems in advance. Yes you do need a decent lawyer. A decent lawyer will not just use an off the shelf precedent but discuss with you what you want. It is a two way process. You say what you want and the lawyer then says raises points you have not considered.

    Comment


      #3
      Thank you Lawcruncher.
      One lawyer I have just spoken to (who I'm told is quite experienced in this field - and quite expensive!), has told me we do not even need a deed of trust. That because it is such a simple division of responsibilities, all we need is a deed of variation and perhaps redrafting of leases...
      Am I right in understanding that whichever way we do it, our flats will not be 'freehold flats', but 'leasehold flats with share of freehold'? There is no way we can cut it up so we each have our own separate freehold?

      Comment


        #4
        There is no doubt what the obligations are wearing your landlord hats. That has nothing to do with why a deed of trust is highly desirable, if not legally required. The deed can cover such things as; who can be a trustee; how trustees are appointed; when a trustee must be appointed; a requirement to do all that is needed to appoint a new trustee; how decisions not directly related to the leases are to be made, etc etc.

        The leases may need redrafting, but that is a separate matter.

        Am I right in understanding that whichever way we do it, our flats will not be 'freehold flats', but 'leasehold flats with share of freehold'?

        Yes.

        There is no way we can cut it up so we each have our own separate freehold?

        There is, but you do not want to do that.

        Comment


          #5
          OK thank you.

          Comment


            #6
            A deed of trust will ensure if you have to go to court to transfer your 'share of freehold' with your leasehold sale it will happen. But you would still need to go to court in the event of a difficulty, the dot would just make things easier.

            That's the only benefit I can see. It won't really help with arguments over maintenance etc as you will always be 1 vs 1.

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