Any pit-falls post agreeing the purchase of our Freehold?

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

    Any pit-falls post agreeing the purchase of our Freehold?

    Hello,

    In a block with 3 flats we have struck an agreement, as of last week, to buy the Freehold from the current Freeholder.

    We have agreed a price and our solicitors are following-through.

    Are there any pitfalls to watch-out for?

    I am wanting to extend into the garden and convert the current cellar/basement, so it would be good to know what to look out for and/or instruct my solicitor to ensure.

    Thanks in advance for any help!

    #2
    I will only reply to your alterations.
    You must get the agreement from the freeholder ( that's the 3 of you ) to authorise the conversions
    If not 100% agreement of the freeholder ( 3 people ) then you can't convert.

    You have to lease the ground on which the extension in the garden occupies.
    You bought the lease for the flat ( you do not buy the flat, you buy the lease.)
    At present your lease does not give you the right to occupy a none existent garden extension, and you need a deed of variation to include a building in the garden, and all other leases to be changed - at your cost, to show the garden extension is not part of the building maintenance, nor part of the insurance.
    The 3 leases must specify this.
    The other leaseholders, as representing 2 thirds of the freeholder, can ask for money to authorise the building of an extension.

    If the garden is a common garden, for use by everyone, the other leaseholders ( and as 2/3s of the freeholder ) can refuse to give permission to have their right, as stated in the lease, to use of the whole garden deminished in area.

    THE cellar/basement.
    I would assume this to be common usage also ? It's rare a basement is demised to the ground floor flat.
    If so, it's the same as above.

    Regarding getting the freehold, you must form a company.
    things you have to legally obey ( just the tip of the iceberg ) can be found at
    http://ram2.hostbyet2.com/

    Comment


      #3
      Hi, as RAM has covered the issues about your alterations, there are more general issues to consider.


      Hopefully you have instructed solicitors with experience of buying freehold for the leaseholders?

      As there are less than four of you, you have the option to own the freehold jointly as trustees, and be named on the title, and have no freehold company.

      A company needs managing per the Companies Act. Not too difficult but you don't want the freehold to pop off to the Crown because you all forget to submit the needed and straightforward paperwork annually!

      The company will need directors willing to run it. If you are all three directors then majority rule applies unless you design the company articles to require unanimity (?).

      On the other hand, holding the freehold on trust seems to have pitfalls too.

      Read here..

      http://www.lease-advice.org/article/...y-as-trustees/

      As I see it, the pitfalls in either option are decision-making between the three flats.

      To quote LEASE:

      "Decisions made by trustees must be unanimous. Differences can be dealt with by the court. With a company, a majority of the shareholders or members can pass resolutions and the directors of the company may have powers to make certain decisions on behalf of the company."

      Given your wishes and RAM's answer, you are right to be clear in advance what you may face. Just because you will own the freehold you can't invade the common parts etc. You still have a lease and a freeholder to comply with. You will be one vote. Don't make enemies of your neighbours!
      Do not read my offerings, based purely on my research or experience as a lessee, as legal advice. If you need legal advice please see a solicitor.

      Comment

      Latest Activity

      Collapse

      Working...
      X