Lease Changes after Freehold purchase

[chazer1]

I have just bought the freehold to my flat with 10 others in our block of 12 (2 decided not to buy), however we have not issued new leases. We formed a company with the 10 persons purchasing the freehold being directors with one share each.

Do we now have to get all our leases changed, say to 999 years, except for those who did not join in purchasing the freehold?

Do we need to get new leases made up for those who didn't join in the freehold purchase?

Where should we go to get this work done, and what will the likely cost be?

Any advice will be very welcome. Thanks in anticipation.

[PropertySolutions]

Hi Chazer

Although you have now purchased your freehold, unless a deed of variation has been required for a specific reason the terms of the lease will remain unchanged. As a result the lease in place before your purchase remains unchanged.

The main difference at your property now is that you (as an officer and shareholder of the freehold company) are responsible for carrying out the obligations of the landlord along with the other shareholders.

In the event that a lease extension is required/desired you will still need to approach the Freehold company in your capacity as a leaseholder with a formal request which will then be considered by the officers of the company.

In my experience of Property Management in Bournemouth potential costs should be discussed with your fellow shareholders whilst professional costs can vary from £1000.00 upwards.

Hope this is of some help.

[Richard Webster]

The ten of you can club together and all instruct the same solicitor to arrange lease extensions for no more than the legal costs of doing it. If 10 were done at the same time then I certainly wouldn't be charging anything like £1,000 per flat!

[billie]

We have also been given the option to purchase the freehold on our apartment. So far about 50% of the residents are going ahead but we are unsure. We don't really want the hassle of carrying out all the obligations or the costs this will entail but are worried what will happen if we opt out. Will the shareholders be able to change the terms of our lease? We currently successfully let our apartment as a holiday home but are aware that some residents are against this type of let - would they be able to prevent us? And if we did buy the freehold how much of a voice would this give us? Would all the shareholders have to agree on any changes or would the majority rule?

We are aware that if we buy the freehold we will have a say in how the building is managed and that costs may be reduced, but are there any other advantages?

[JustinN]

If the other leaseholders form a company and buy the freehold, they cannot unilaterally change the terms of your lease. If, therefore, you do not want to be involved in the costs of joining in the purchase of the freehold, and are not worried about not being directly involved in the management of the building (relying instead on your rights as leaseholder), you can safely decline to get involved in the freehold purchase