Freehold operating as a Ltd Company?

by Readers Question

2 months ago

Freehold operating as a Ltd Company?

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Freehold operating as a Ltd Company?

I have purchased a leasehold flat which is one of three in the building. I have also purchased a half share in the freehold. This is my first venture into leasehold property.

Myself and the other freeholder are currently in negotiations with the third flat leaseholder who wants to buy a share in the freehold. As part of the discussions surrounding this we have been advised that going forward, it may be better to operate the freehold as a limited company.

Does anyone have any experience of this or the pros and cons of operating the freehold as a limited company?

Thanks in advance for any help you can give.

John



Comments

Puzzler

2 months ago

If there are only three of you, you don't need to (depends whether there are spouses involved) as the maximum number of owners on a title is four. There is a lot of admin and cost with a company which can cause problems if you are late filing, the final recourse is that the company can be struck off and the asset (the freehold) revert to the Crown, however this is not likely if you know what you are doing.

Speak to the solicitor who is doing the conveyancing, they should be able to advise you of the pros and cons. You may need to check they have the right expertise.


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