Freehold on a Ladder property

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Permalink Reply by Antoinette on July 5, 2010 at 11:05

I know the process all too well, and have sent a friend request so I can tell you all about it! I'm assuming that if you're on the ladder, it will be you and one other flat looking to split the freehold 50/50, which is relatively straightforward if your freeholder is not, in principle, opposed to the idea. My main tip is to negotiate before rushing into the formal process as this can turn out to be time-consuming and problematic.

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Permalink Reply by Paul Harvey on July 5, 2010 at 16:17

hi there - we did this a couple of years ago, was straight forward - can recommend name of a very good and cheap solicitor who took care of everything for us and managed to negotiate a good price on the freehold
drop me a private email and i'll pass on more details

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Permalink Reply by David T on July 6, 2010 at 23:04

I've sent a message request - will give more details when it comes through.

The process is simple - and you don't need a solicitor as long as you can fill out a few forms!

But you do need to decide the form of ownership of the freehold.

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Permalink Reply by Janet yesterday

David, my neighbours and I are contemplating buying the freehold of our property (two flats in one house) but are not sure what the best form of ownership of the freehold is - set up a company or become tenants in common. It sounds like you might know something about this issue. Do you have any advice?

Thanks

Janet, Sydney Road

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Permalink Reply by David T 19 hours ago

Hi Janet

I don't pretend to be an expert, but the way we chose seemed to be the simplest. We set up a limited company and used this to buy the freehold. Setting up the company is easy - just go to Companies House (online) and follow the instructions. You will need the Memorandum and Articles of Association.  It is important to specify that only the leaseholders (and executors etc.) may own the shares.

Ours are publicly accessible at Companies House (Co. number 04521531) and you are welcome to use them as a template.

We have two shares - if the leaseholders are a couple they should own their share jointly.

The purchase process would usually be done by a conveyancer - we did not need this as I have some experience in this field and the process is simple. 

The other option is joint ownership, but I do not know exactly how this is set up - you would probably need legal advice for this.

Buildings insurance can be a nightmare though - insurers seem to think that we are a large commercial company and quote accordingly. It also doesn't help that they regard this as a subsidence area.

Hope this helps.

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Permalink Reply by empyrean_aisles on July 6, 2010 at 23:07

Thanks to all of you - for personal messages as well as for posting in this thread.

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