Harringay, Haringey - So Good they Spelt it Twice!
Ownership of a freehold - what's the best form?
I wonder if anyone has advice on this issue: my neighbours and I are planning to buy the freehold of our flats on the Ladder (the usual set up of two flats in one house). We have negotiated a reasonable premium with the freeholder and are ready to proceed. But we're not sure what the best form of ownership of the freehold might be. Some online advice suggests setting up a company and some suggests owning it as tenants in common. We asked our solicitor and she basically said 'it's up to you' (!).
What have other people in the same situation gone for - company or tenants in common? What pros and cons did you experience?
Any advice gratefully received. Thank you.
Tags for Forum Posts: freehold, leasehold, property, tenants-in-common
Replies to This Discussion
-
Permalink Reply by Anonymous Bosch on
-
If that's your solicitor's "advice", you need to get yourself a different solicitor
-
Permalink Reply by Andrew Stillman on
-
so, what advice would you feel comfortable with from a "different solicitor"?
-
-
What a solicitor should do in a situation like this, is advise the options available and detail the pros and cons of each position - this may elicit further questions from the client and a reasoned decision can be made.
The pathetic response leaves the poor poster having to avail themselves of the sage advice of the Harringay Online community.
Faced with a response equivalent to a shrug of the shoulders and a "Whatevs", said solicitor would be handing over my files to another solicitor by days end.
While my reply may appear flippant, that is precisely what i'd do in the absence of further clarity.
-
-
Yes, I agree. I would get fired from my job if I took such a lacklustre approach with my clients.
-
-
A company seems overkill for two flats in one house. You'll need to file accounts and various other things every year which seems excessive.
For mine we were tenants in common and there were no issues with that.
But, as others have said, your solicitor should be giving you a bit more in terms of pros and cons rather than "it's up to you".
-
-
Thanks. We are considering tenants in common, with a Deed of Trust to outline terms and conditions.
-
Permalink Reply by LondonN4 on
-
https://www.lease-advice.org/article/share-of-freehold-when-joint-o...
this site helped me when I did this previously, with separate company for four flats, all pretty straightforward.
-
Permalink Reply by Rob B on
-
A company is the better option. There are some costs associated with it, and you have to ensure that you file your return annually (if you if ignore this and the company gets struck off for failure to comply, the freehold will revert to the crown Bona Vacantia)
but overall for future management of the building it is better. It is much easier to transfer a share of the company if one of you sells a flat than to transfer half the freehold every time. Sometimes co freeholders fall out and refuse to transfer their share of the freehold, and there is not much that can be done about that without litigation. If it’s a company it’s much easier. The articles of association should say that only a flat owner can own a share, and require the share to be transferred with the flat.
finally, you absolutely must must must extend the leases of your flats to 999 years immediately upon acquiring the freehold. The amount of very expensive problems I have had to sort out by people who “never got round to it” or thought that since they owned a share of freehold it didn’t matter, is insane.
© 2024 Created by Hugh.
Powered by
