charlieking16

Thanks both. Yes the issue really is that he is giving us a particularly good price on the freehold on the basis of him having the garage on a lease. Seems the convenants of the lease will be the key thing...

Looking for a bit of advice on a freehold/leasehold issue. I live in a leasehold flat, we the leaseholders are about to buy out the freehold. The current freeholder is making a condition of the sale that we grant him a favourable new lease on the garage, which is down the bottom of the garden (with joint access down the side of the property). We are getting a good price on the freehold because of this condition, but clearly he's spotted an opportunity to make some extra cash by either letting or selling the garage. The solicitor advises that there is nothing wrong with this arrangement from a legal perspective, which I can see. However, practically, I'm unsure about what will become a third party having access to the property. Obviously as freeholders we would be able to exert significant control over what he could and could not do with the garage, but still I'm unsure. Wondering if anyone has faced a similar situation, how common it is, and any proposed ways forward! Our reading is that he won't sell at such a good price without us granting him this. Many thanks! Charlie

Thanks to all. Seems that one flat one share is the norm. My only question is how you then attribute a value to your freehold share as and when I come to sell? Or for that matter, were we ever to collectively sell the freehold (not that o can see why we would), how would you apportion the income from the sale? Thanks again, advice much appreciated. Will look into ltd by guarantee also

ThAnks nxjen, the issue is different lease lengths complicate the proportions we are paying....

AH great, thanks, so just one share per flat regardless of flat size?

Hello Posting here as imagine others have had similar issues. I own a leasehold flat and, along with the six other leaseholders in the block, we are about to exercise our right to buy the freehold. We will form a company to do so, and I have a question as to the shares of that company. I own the largest flat, and pay 19% of service costs, whereas everyone else pays 13.5%. Should we establish the freehold company on the same basis, with me owning 19 shares out of 100, or should we just issue one share per flat? Does it make any practical difference? I'll be asking the solicitor but before we engage them, trying to gather as much info as possible, so any advice appreciated! Many thanks all Charlie