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neil324

Leasehold + Share Of Freehold

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Seen a flat that is being sold with a share of a company that holds the freehold included in the sale. The lease is running short at 69 years so will need to re-newed. Looking around on the net this would normally cost 7-10K paid to the freeholder. Would the cost still be the same and paid to the company or would it be free(lol most likely not) I think there are 16 flats so it would be 1/16th a share. Obviously going to seek professional advice but maybe someone has dealt with this before.

Edit

Seems a grey area indeed. The other shareholders can try to profit from the situation. If they have a long lease already and seeing there is 16 flats the chance of someone being a muppet increases. Maybe wait until i can eyeball the deeds and legal pack, but doubt there will be any reference to lease extension and the criteria for moving forward. So maybe you have to hope the 16 will co-operate.

Hmmm

Edited by neil324

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Seen a flat that is being sold with a share of a company that holds the freehold included in the sale. The lease is running short at 69 years so will need to re-newed. Looking around on the net this would normally cost 7-10K paid to the freeholder. Would the cost still be the same and paid to the company or would it be free(lol most likely not) I think there are 16 flats so it would be 1/16th a share. Obviously going to seek professional advice but maybe someone has dealt with this before.

If you really do have an equal share of freehold and all flats have the same length lease you will effectively be paying yourself the money.

Of course you will still have to pay solicitors costs for the extension

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If you really do have an equal share of freehold and all flats have the same length lease you will effectively be paying yourself the money.

Of course you will still have to pay solicitors costs for the extension

Just researching now. That the problem if the leases are varying lengths.

Just hope there is something in the legal pack later.

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The only issue is where the management company that you own a share in has multiple buildings possibly in the same road, it can then be far more complicated if 1 person has multiple properties (& shares). & man in effect control the company.

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Just researching now. That the problem if the leases are varying lengths.

Just hope there is something in the legal pack later.

Are you saying that they ARE a different lenght, or that they might be?

If they are, substantially different, and this flat is the only one that needs increasing then the reversion value that having a share of freehold would normally represent is worthless. So this should be taken into account when assessing the flat's value.

tim

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Are you saying that they ARE a different lenght, or that they might be?

If they are, substantially different, and this flat is the only one that needs increasing then the reversion value that having a share of freehold would normally represent is worthless. So this should be taken into account when assessing the flat's value.

tim

To be honest i don't know. If the others had increased their leases without paying then it would be morally wrong.

I think i'll just assume 10k for the leases and share of freehold to be worthless as you say.

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To be honest i don't know. If the others had increased their leases without paying then it would be morally wrong.

It might not be like that.

it could be that when the lease was purchased only some people put up the money. These people were then "rewarded" with a lease extension and the rest not.

(though this wouldn't be the normal way of dealing with leasehold enfranchisement where not everyone wanted to pay)

tim

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It might not be like that.

it could be that when the lease was purchased only some people put up the money. These people were then "rewarded" with a lease extension and the rest not.

(though this wouldn't be the normal way of dealing with leasehold enfranchisement where not everyone wanted to pay)

tim

I'll wait for the legal pack to see if there is any reference to lease extension, if not contact the management company. It's seems there is a 1/16th share of the management company,16 flats in the block which was set up in 1992 included in the sale. I have also sent an email to the leasehold advisory service who state on line it should be a nil premium.

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