Ask a Law Question, Get an Answer ASAP!
The Memorandum states the objects for which the (Management) Company is to acquire an underleasehold interest in premises called "The Estate" and to hold and manage the same for the benefit of the residents entitled to the term created by the Head Lease of the Estate.
Blocks of flats in cathedral Closes do not have an automatic right to lease extensions. the Head Lessor has indicated they would be prepared to grant extensions by way of a NEW tri-party reversionary head lease between itself, the existing Management Company and individual leaseholders/residents entitled as above. The NEW Head Lease and individual leases would be for 90 years and would come into effect in 2104 when the current leases expire but they would be granted now at a cost to present residents who chose to buy them.
At an AGM of the Management Company motions were passed enabling the Company to negotiate a NEW Head Lease to commence in 2014 and to levy all costs thereof on individual current lessees of the Estate.
No amendment to the Articles has been made: is the Company Ultra Vires and are the authorising Motions repugnant to the Articles and therefor void?