Tags for Forum Posts: freehold
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
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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