New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About 2 weeks ago 95
I currently hold freehold interest in my companies name. I wish to close down the company due to total inactivity. The freehold produces no ground rent nor deals with maintenance or insurance.
I don’t want to sell the freehold interest because of its considerable worth – the related leaseholds are very short and located in greater London. My thoughts are to transfer it into my sole name.
The below is an excerpt by my current solicitor –
“……as the freehold will be changing hands, you have to give the right of first refusal to the tenants. As the leases on this freehold are particularly short, I presume the freehold is worth a substantial amount of money. This would need to be reflected in the Section 5 Notices as you would not be able to transfer the property into your sole name for any sum less than that set out in the Section 5 Notice. If you were to put a fairly nominal consideration in the Section 5 Notices you run the risk that the tenants will accept the offer and you will then be compelled to sell the same to them. If the lessees do not accept the Section 5 notices, and you transfer the freehold into your sole name, this may have a Capital Gains and Income Tax implications together with stamp duty.”
Is anyone able to confirm all of the above excerpt to be correct? Especially the part about not being able to transfer the property into my sole name for any sum less than that set out in the section 5 notice.
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