Purchase / sale of freehold

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Purchase / sale of freehold

    Hi everyone.
    I currently own 1 leasehold flat in a converted house where there are a total of 3 flats. About 6 years ago, the freeholder wanted to sell the FH and offered it to all leaseholders for £4500. Myself and one of the other leaseholders were interested but the third wasn't and declined. Myself and the other interested freeholder then bought 50% each of the freehold for £2250. The third freeholder has now approached me and said he now wants to buy his 1/3 share of the freehold. My questions are

    1 Are we legally obliged to sell it to him?
    2 What is the best way to value it and what would happen if no agreement could be reached?

    Thank you



    Dan

    #2
    1) No. The concept of compulsory purchasing a fractional interest is not provided in the Act

    2) Not applicable

    However unless there is reversionary value building up it may be a good idea to have him join, if he/she feels an outsider it may make the management more difficult

    Comment


      #3
      If you do decide to have the third join in as a freeholder, then consider asking the same price as you two paid. e.g. £ 2250.

      Before you say that is too much, then why should the third "freeholder" pay less than you paid ?

      The freeholder needs cash in the bank to run the place, accountants, companies house fees if you have formed a company with shareholders.

      Comment


        #4
        I'd be asking for the full freehold cost, £4500 + costs/fees, etc.

        BTW have you extended your leases yet?If not then you should give yourselves 999 year leases.

        Comment

        Latest Activity

        Collapse

        • Reply to AGM cancelled.
          by eagle2
          Any meeting which you decide to hold will be an informal meeting only, you do need to follow the correct procedure if you wish to hold a valid meeting,

          The Articles should state whether or not directors need to declare conflicts of interest and whether or not they are entitled to vote on...
          26-01-2022, 13:30 PM
        • AGM cancelled.
          by Grumio
          Is this legal?

          A bit of background, we currently have three directors, we are allowed to have up to a maximum of eight directors according to the articles of association. We are all leaseholders. Last summer the three directors decided to hire a managing agent who is now in charge of the...
          26-01-2022, 00:46 AM
        • Reply to AGM cancelled.
          by Grumio
          It is both a managing agent and a residence Association. But we want to go back to managing the block ourselves.

          Thanks for the reply, yes invitations have been sent to all our members. And I agree, they should not cancel the AGM, especially when they haven’t got a plausible reason to...
          26-01-2022, 12:12 PM
        • Reply to Lease extension triggers doubling ground rent change
          by sgclacy
          Doubling every 25 years is simply a guess as to what inflation may be, if inflation of the current levels ( about 6% ) was to continue the real value of the rent would fall by 77% and doubling would not address the enormous damage done by inflation. However, if inflation was less than 2.81% per annum...
          26-01-2022, 11:57 AM
        • Reply to Lease extension triggers doubling ground rent change
          by Section20z
          You are clearly using the informal route and can thus negotiate whatever terms you like.
          freeholder will want to retain some ground rent but avoid the doubling clause, maybe suggest small fixed rises every ten years....
          26-01-2022, 10:40 AM
        • Service charges according to floorspace vs lease stipulation
          by Santa Fe
          Hello. I own a flat in a block of four. The new owner of the smallest flat is disputing their contribution to service charges based on floor size. All four flats have historically paid 25% each, but of the four leases only mine states that I pay 25%. I have spoken with a solicitor about this and he...
          24-01-2022, 22:55 PM
        • Reply to Service charges according to floorspace vs lease stipulation
          by Section20z
          Quite, there is also the question here of who the actual freeholder is and whether the whole thing is any concern of the OP who only ever need pay 25% !!...
          26-01-2022, 10:25 AM
        • Reply to AGM cancelled.
          by eagle2
          Yes, I am confused too. If there is a Residents Association, it is required to comply with its constitution.

          There seems to be a Company involved as well. Whether or not it is required to hold an AGM depends on its Articles, AGMs can be cancelled for various reasons, lockdowns are an example,...
          26-01-2022, 10:19 AM
        • Reply to Service charges according to floorspace vs lease stipulation
          by eagle2
          I think that we have found 3 possible alternatives already and no doubt we could find more, As Section20z says it is very rare for a court or a tribunal to intervene, The lease appears to allow the freeholder (?) to decide what is fair and reasonable and it has decided that an equal share is reasonable,...
          26-01-2022, 10:01 AM
        • Reply to AGM cancelled.
          by fos333
          Is this a Residence Association or Residents Management Company?

          Had invitations to the AGM been sent out to all members? If invitations had been issued then no the AGM should not have been cancelled.

          If the 2 directors are "good friends of the managing agent" they...
          26-01-2022, 10:00 AM
        Working...
        X