How do I transfer the freehold of a property that includes a leasehold flat?

Hi, I wonder if anyone can help?

I own a leasehold flat above a small retail shop. I have a mortgage on my leasehold flat. My dad owns the freehold of the property which includes my flat and the retail shop which the rent provides an income to him.

He wants to transfer the freehold of the property including my flat and the shop below me.

From reading the forums I understand this is only possible if I make a ltd company as I cannot be the leaseholder of my flat and the freeholder of the property (including my flat) at the same time.

Am I correct in this?

Also, I see that most leaseholders who buy a freehold of their property put a nominal value on the freehold being transferred to the ltd company they set up. However, since the shop generates an income does this change anything?

Does this mean there is extra tax to pay or more hoops to jump through?

Any thoughts or ideas are much appreciated.

Charles