Neil Patel

Registered with Property118.com
Thursday 29th June 2017


Latest Comments

Total Number of Property118 Comments: 2

Neil Patel

10:24 AM, 25th July 2017
About 4 years ago

Sale of Freehold without Freeholders approval?

Thank you all for the responses they have been very helpful in navigating a way forward. A final question which I hope is an easier one.

4 of the 6 of the original leaseholders purchased the freehold under a collective Enfranchisement back in 2001. The 4 flat owners who purchased 100% of the freehold i.e. Each purchaser was assigned 25% of the shares issued which was formed to purchase the freehold and each of the 4 flats was granted a new 99 year lease extension.

Does the remaining leaseholders have the right to force a sale from the shareholders to acquire a share of the freehold?

Reading the guidance it states at least 50% of the of the flats, who are qualifying tenants must participate. Hence it would seem there is at best only 2/6 which is less than 50%?

Many thanks... Read More

Neil Patel

14:47 PM, 14th July 2017
About 4 years ago

Sale of Freehold without Freeholders approval?

Reply to the comment left by "Puzzler " at "05/07/2017 - 19:13":

My apologies for the delay in replying I have been away for medical reasons. I'll try and respond with the clarifications. When the company was formed to buyout out the freehold 2 out of the 6 Leaseholders declined to purchase their share hence the remaining 4 purchased the freehold each owning 25%.

The management company has no sweeping authority or any authority to sell the freehold without bringing the issue for approval to the board.

Each of the new freeholders were issued a new 125 year lease and the remaining 2 continued with their exiting lease term.

My gut feeling is Shareholder A has coluded for some reason to sell 16.5% of the freehold.

Seeing as though this was not agreed buy the board or any of the other shareholders, then the sale is either null and void, or shareholder A has diluted his own shareholding by selling 16.5% of his 25%.

I am in Dorking Surrey property In is in Northwest London.... Read More