Joint Freeholders blocking sale to SPV?

by Readers Question

8:13 AM, 27th October 2016
About 2 years ago

Joint Freeholders blocking sale to SPV?

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Joint Freeholders blocking sale to SPV?

I have made an offer for neighboring property that is a flat in a block of 4. I have a right of way across their car park & have identified some development potential that I have previously discussed with the freeholders. blocking

I set up an SPV (Single Purpose Vehicle Ltd Co.) with a partner and as part of the legal checks the other freeholders discovered that I was a director of the SPV. They have now convinced the vendor to reject our offer. I had a friend call the estate agent posing as a buyer and when he mentioned that he may use a SPV to purchase the property the agent categorically stated that they would not accept any offers from companies.

In light of the imminent arrival of S24 this seems rather short sighted and I would question whether the other freeholders have the ability to block the sale in this way. Any thoughts on how I could acquire this property without revealing my identity? A large part of me thinks it is not worth getting involved with a bunch of individuals that intend to be so difficult.

Cheers
Stephen



Comments

Neil Patterson

8:19 AM, 27th October 2016
About 2 years ago

Hi Stephen,

The majority of new BTL purchases are now in the name of a Ltd Co. so this is going to be a lot more common for vendors.

I am guessing it is the development plans that did not go down well?

If the problems have started already with the freeholders do you really want to pursue the sale?

Unless there is something in the lease about Ltd companies I am guessing they are just using blackmail/influence over the vendor by threatening to be awkward which is working.


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