Retain permission to develop when granting a long lease?Make Text Bigger
I jointly own with one other individual the freehold of a property via a ltd company. The property comprises of three flats on long leases ( 999 years) and a separate integral self contained garage and separate Garden that is not directly accessible from any flat.
The garage and Garden are not on separate leases, but belong to the freehold. An issue arises if either of us wishes to sell our flats as a share of freehold, as a sale of share of freehold would automatically transfer the interest in the Garage and Garden with it which has issues for us, both in terms of being able to find buyers prepared to pay the extra premium for a part share of these areas ( it is in a good area of London) and also if we wish to hold the garage/garden longer term with an eye to development potential.
The solution as we see it is to grant separate grant long leases on the Garage and on the Garden to us, the current freeholders, allowing the individual flats to be sold as share of freehold. A secondary question arises given the potential of the Garage / Garden for development value – when granting leases to the garage / garden, is there any way within the leases we grant ourselves to guarantee the rights of the leaseholders to be able to develop the Garden/ Garage without being blocked by the new freeholder or needing to pay a premium in the case that the flats are sold and new freeholders are introduced?
Are there any other solutions to these conjoined questions, aside from selling the flats as leasehold and retaining the freehold?
Many thanks for any thoughts on the above.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.