Hi, sorry for delay, as we aren't purchasing under section 5 or whatever it is, I don't think we can negotiate the price
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Buying the freehold on my block of flats
- Thread starter Keitai
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did you read this:
Looks good for leaseholders. What's its relevance for us buying freehold? We should still proceed, shouldn't we?
We have another meeting tomorrow the major dispute is over extending the leases to 999 years , some wanna do it for £200 another guy a few thousand which is then put back into the maintenance pot for the roofs etc
We've gotta decide on how much to charge people who aren't part of the freehold if they wanna extend their lease too. That money was gonna go to each of the participants of the freehold as they're shareholders.but one guys idea was to make it cheap for an extension or put that money back into the pot for maintenance etc. The guy suggesting this is bitter because he just extended his to 125 years for £20,000 so is angry he's wasted his money
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what did he extend it from? Did you buy it or not?
He extended from probably 60 years to 125.
We're waiting to see how many are still interested. 7 of 12 or 13 have paid the 2nd £100 so £200 in total.
Summary of meeting-
The reason for the meeting was to be clearer on some of the communications that have taken place and led to misunderstandings etc.
I am happy to say that clarity has been achieved and it would appear we have actually all been agreeing all along.
So..... the group purchasing the freehold will have 999 yr leases.
The remaining people that are not part of the free hold purchasing group will have an opportunity to purchase a lease extension some time in the future when convenient to them. The price of this will be determined by the free hold purchasing group.
With the current government formula the cost would approx £27k per lease however all attending agreed it would be a very positive thing to charge a vastly reduced rate for this.
If, and it is a big if, people (not the freeholder group) did want to extend their lease then the money raised would, in the first instance, go back to the freehold group so that their initial investment of approx £6k could be recouped.
Any lease extension payments after that could (if agreed by the group) go back into the maintenance pot to improve the building with things like better roofs etc (as an example) the pot would then be big enough to potentially vastly improve the buildings and the site in general.
All those investing in the free hold purchase need to do so with no expectation whatsoever of recouping their investment as there could be a possibility that no other lease holders will be in a position to increase their leases. the freehold group will of course though have a share of the freehold and a 999 year lease for the small cost of the investment currently standing at approx £6k
I trust that is clear.
Regarding development, this was merely a hypothetical answer to a question around what other people in our position have done with their buildings and is in no way even an idea on the table and would be not entertained at this stage or in the near future.
I trust this is clear and everyone is on the same page.
Those that attended the call this evening please do add comments if anything written above is not clear, could cause any confusion or is in any way going to cause miscommunication in any way a
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That sounds a bit messy
You should see it like a startup or dragons den. Those who buy now do so with greater risk, there should be no option for others to come on board later at a similar deal. By suggesting a possible better deal than standard commercial in the future you discourage people paying in now.
"This is a one time option to be part of the freehold purchase company and secure preferential influence and rates substantially below market value. if you want to buy in later there is no guarantee and given those joining early take more risk, its only fair that they benefit from later additions". etc.
You should see it like a startup or dragons den. Those who buy now do so with greater risk, there should be no option for others to come on board later at a similar deal. By suggesting a possible better deal than standard commercial in the future you discourage people paying in now.
"This is a one time option to be part of the freehold purchase company and secure preferential influence and rates substantially below market value. if you want to buy in later there is no guarantee and given those joining early take more risk, its only fair that they benefit from later additions". etc.
