Lease Extension when Owning the Freehold Block of 6 flats?

Lease Extension when Owning the Freehold Block of 6 flats?

0:01 AM, 10th February 2025, About A day ago 3

Text Size

Our enquiry concerns a Lease Extension for a block of 6 flats in the centre of Aldershot with 84 years (of the original 125 years) remaining on all 6 leases.

The 6 leasees each own an equal share of the freehold interest of the block. There is a Management Company Ltd which has been set up to manage the block on our behalf.

Following discussion, all six leasees have agreed to extend the leases with no premium to 999 years and a peppercorn rent (submit and regrant) using the “Informal” process. All six lessees have agreed to me finding a suitable solicitor to complete the work in a timely, cost effective and straightforward manner.

Be really interested to hear ideas/thoughts from anyone having been in a similar situation. Recommendations appreciated.

Mark


Share This Article


Comments

Kizzie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:43 AM, 10th February 2025, About 14 hours ago

Was the Management Company set up by the developer and is a party to your Leases a Residents (not residential) Management company (RMC)or set up by leaseholders and is a Right to Manage Company (RTM).

The RMC holds the freehold interest and leaseholders in their separate role as shareholders/members with voting rights under RMC articles and Co Act 2006, respond by a vote to extend their leases, the Resolution is minuted and put into the hands of an experienced solicitor.

An RTM does not hold the freehold interest.

The question of legal fees are probably not allowable cost to service charge in your leases but should be checked. It is therefore is an extra charge which must also be agreed and paid by leaseholders in their roles as members not as lessees.

Judith Wordsworth

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:20 AM, 10th February 2025, About 13 hours ago

You should be able to get a solicitor or conveyancer to draft a template Deed of Variation, if none of the joint freeholders can or have conveyancing/legal experience.

Leasehold Advisory Service may well have a template or can advise.

Then use this template for ALL the flats (correct Part (1) and (2) and The Lessee or The Lessees (depending if only 1 or more Leaseholder per Title needs to be correctly inserted). Registration at HMLR is about £40 ish (last one I did 2022) and have registered with the Titles for each flat AND for each one also a certified copy with the Freehold Title. Sensible to do an additional executed copy of each flat's to keep with the Management files as well as a photocopy.

Rent 999 years and Ground Rent a Peppercorn

Andy

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:42 AM, 10th February 2025, About 13 hours ago

I've been through this process - virtually identical set up to your position except with more flats involved. Hire a legal rep with experience in leasehold. Process is straightforward, minimal cost and well worth it from an investment stand point.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More