10:35 AM, 21st April 2023, About 7 months ago 6
Hi, I own a ground floor flat that is mortgage free, along with the freehold of the building. The upper flat is owner occupied.
The deeds state a peppercorn rent of £10pa from the upper flat to me, and a 999 yr lease was created in 1990 by the elderly owner.
We share specific repair and maintenance costs defined very fully in the deeds. The upper flat wanted to sell but hit a problem with me owning the freehold (which may also affect me if I ever sell) and the way it was all drawn up.
I was going to transfer the freehold into my name and that of my son or just my son but received this text from the prospective purchaser of the upper flat (who I know).
I am trying to be fair to everyone, including me: “Thanks, our solicitor said that the freeholder (me) would need to set up a separate company and have the company issue the lease to the owner of the ground floor flat (me) as they were not comfortable with the existing freeholder issuing a lease to themselves”.
So, they want me to go through all the work and costs of creating a company, lodging it with Companies House by the sounds of it?
Seems a long winded way of doing things other than me just transferring the freehold to my son?
Any advice would be welcome as I am not a legal beagle.