Purchase / sale of freehold

  • 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


    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


      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.


        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.


        Latest Activity


        • Old managing agents accounts
          by jazzythumper
          Since obtaining the RTM and changing the managing agent, we have never been given full accounts / receipts for the previous year(s). We believe that as the old freeholder and leaser holder of one of the flats were represented by the same solicitor that prior to the sale of the freehold, we were subsidising...
          20-05-2022, 11:21 AM
        • Reply to Old managing agents accounts
          by jazzythumper
          would this be a good starting point?

          25-05-2022, 15:37 PM
        • Reply to Old managing agents accounts
          by jazzythumper
          As in a simple application to the old managing agent Or freeholder? Which one?

          To provide all accounts and payments based on the fact that we disagree with the charges? How far back can we go? And does having paid the service charges mean we have agreed to these?

          Thanks for...
          25-05-2022, 15:31 PM
        • Reply to Freehold confusion
          by Section20z
          It's never advisable , it can cause serious issues if you have a claim affecting communal areas. For buildings insurance the whole property should be covered and the cost split between the two flats.
          The only problem with an absent freeholder is that when selling the flat a pernickity solicitor...
          25-05-2022, 10:02 AM
        • Reply to Share of feehold/shared service charges?
          by Stu1020

          Thank you for the response.
          25-05-2022, 09:40 AM
        • Reply to Freehold confusion
          by AndrewDod
          There is no cast iron rule that the freehold "share" has to be transferred with any sale. You may need to purchase it from the friend (or his estate)....
          25-05-2022, 09:22 AM
        • Share of feehold/shared service charges?
          by Stu1020
          Hi there,

          I'm new to the forum and looking for advice on a sticky freehold situation.

          I own a two-bed flat in a converted building with two one-beds. The lease states that a fair proportion is payable towards the service charge. However, there has been a running agreement of...
          20-05-2022, 11:39 AM
        • Reply to Share of feehold/shared service charges?
          by eagle2
          I suggest that you ask the other 2 leaseholders to explain why they consider that the current allocation is fair. The freeholder has the right to review the allocation from time to time. Unfortunately, a "fair proportion" means that several alternatives would be considered reasonable to a...
          25-05-2022, 06:27 AM
        • RTM Hand Over Issues
          by martin15
          RTM handing over issues

          Our RTM companies comprise 4 blocks of 6 identical two bedroom flats and each block is registered at Companies House as a separate company.
          Following the acquisition date, it was discovered the former directors ignored legal advice and changed property management companies...
          23-05-2022, 19:36 PM
        • Reply to RTM Hand Over Issues
          by eagle2
          You appear to have a claim against the freeholder, not the individual companies, who are acting as agent for the freeholder. A Tribunal does not have the jurisdiction to deal with monies which should be handed over, it is a matter for the courts,
          25-05-2022, 06:16 AM