sam bond

Registered with Property118.com
Friday 5th February 2016


Latest Comments

Total Number of Property118 Comments: 5

sam bond

8:28 AM, 13th February 2016
About 3 years ago

Inherited Freehold situation

Reply to the comment left by "sam bond" at "12/02/2016 - 18:40":

I am not sure why the freehold is held in a company with its own bank account. Can anyone tell me the advantages/disadvantages please. My properties are held personally (if only I'd had a crystal ball!)... Read More

sam bond

18:40 PM, 12th February 2016
About 3 years ago

Inherited Freehold situation

The lease has 81 years to run. I had the lease valued and so did the tenant. We've agreed a price in the middle of the 2 valuations. The flat is a modest one on the south coast.... Read More

sam bond

0:09 AM, 7th February 2016
About 3 years ago

Jeremy Corbyn to effectively Confiscate Landlords Properties

Reply to the comment left by "Paul Newsome" at "02/02/2016 - 00:31":

I have come across a number of eastern Europeans, mostly Poles, who have arrived in this country with nothing. They rent a cheap room, work nights, overtime and week ends (often in unskilled jobs), shop at Aldi and Lidl, don't treat themselves to any luxuries (well... maybe tampax) and within 3-5 years have managed to save up a deposit to buy somewhere. These people are competing with property grabbing landlords but have still managed to get on the housing ladder. Why do you think it is that they managed to do it but you didn't?... Read More

sam bond

17:00 PM, 6th February 2016
About 3 years ago

Inherited Freehold situation

Reply to the comment left by "Puzzler " at "06/02/2016 - 16:20":

Thank you Puzzler, Renovate to Let, @section42 and SE Landlord for your comments. I am beginning to get a grasp on this!

When I purchased the freehold 10 years ago, the 4th leaseholder did not want to buy their share so I bought the whole thing. The company that owns the freehold (4 shares) is a limited company.

We have agreed the lease extension without a section 42 statutory notice. My solicitor will be updating the lease to bring it in line with modern leases. We have yet to discuss what to do with my 3 leases.

If I wanted to convert the loft or extend, can one leaseholder prevent it (assuming I have planning permission)? ie 25% of the leaseholders. This question affects another property I have. Does anyone know how many leaseholders, who all have a share of the freehold in this case, need to agree in order for an extension or loft conversion to proceed? .... or disagree in order to prevent it?... Read More

sam bond

0:02 AM, 6th February 2016
About 3 years ago

Inherited Freehold situation

Reply to the comment left by "Puzzler " at "27/01/2016 - 07:57":

Thank you all for your comments. The property was converted by someone else in the eighties and I purchased the 3 flats and freehold one at a time. The management company that owns the freehold was already set up with 4 shares when I bought it about 10 years ago. My ex partner managed it for the last 10 years ... but now I have to do it and I am a novice at this side of things.

I have agreed to extend the lease (on the flat I don't own) for 90 years with peppercorn ground rent. Presumably his share of the freehold still has some value - though there's not really any reason for this leaseholder to purchase a share of the freehold (unless he's really unhappy with how I manage it). So I'll be left holding the Freehold and have all the responsibility of maintaining the block. This would be OK if it's just for the flats I own, but having another leaseholder to answer to seems to come with lots of codes of practice for serving notices, budgeting and accounting for everything etc.

I have other flats that use managing agents but they charge a minimum rate which is not economic for just 4 flats (and you end up chasing maintenance up all the time anyway!) Their main advantage seems to be to deal with all the legal responsibilities.

My comments about consolidation refers to some mortgage companies who keep any capital left from a sale (after the mortgage has been paid) to reduce other mortgages in your portfolio. This is what was making me think twice about extending my 3 leases. If I needed to re-mortgage then I would need to extend. If I did, I presume I wouldn't charge myself to do it as this would make a taxable capital gain? Is this right? Should I do them one per year? I am not sure what '@section42' meant by 'on the disposal' .

There is a nice loft space which falls under one of my leases so I did have an eye on that but this would be new territory for me and I am not sure if the rental increase would make it worthwhile.

This freehold was purchased for £5,000 (10 years ago) and the lease extension is being purchased for £6,000. Further advice on CGT would be very greatly appreciated.

Also, what would happen to the freehold if 999year leases were granted? Do you just 'give' a share of the freehold company to each leaseholder? Maybe I should have offered a 999year lease?

I have another freehold with 8 leaseholds of which I own one. Only one leaseholder can afford to extend. I presume it is better to extend than offer a share of freehold? I suppose its possible to end up with some having a share of freehold and others having a lease extension! What are the pros and cons please? Your comments are much appreciated.... Read More