Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.
May I ask how you own the race track please? Is the race track owned in your own name jointly with another or is it owned by a limited company in which you have shares?
Owned in my personal name, same as other joint owner.
also the club purchasing the track has 10 members who are funding the purchase.
Thanks - so is this land on which is built a race track or something else?
but the track does have more members
Its a 1/5th scale race track for large scale cars/bikes etc
All radio controlled
Its a race track itself within a fence, Toilets, x2 covered pits, some sheds and outbuildings, and all contents
Thank you. Is the land registered at HM Land Registry? Have you agreed a figure or approximate figure?
We have agreed a cash some, and then the payments to be made in parts or whole buy 36 months...Land is registered to another party who owns
sorry, who owns the field its built upon
Sorry yes we have also agreed a sale price
Also one concern is if they change name of the club, if they do can i have a claus to say the track and all contents reverts back to me unless the new club signs the agreement and takes over all payments etc
Thanks. What sort of figure have you discussed as a sale price?
Is the land registered at H M Land Registry?
Is there presently a mortgage on the land?
Is your co-owner willing to agree to the sale?
sale price is £12,500 with 5k deposit, then the balance over 36 months..... the land as whole is registered, i am not 100% sure if the track is registered separately as on this field there is a section that our track sits on, but also has a cafe there, and other buildings that are rented....No mortgage, just rent is payable to the land lord..... The co owner does not know about the sale, is this a problem?
Thanks. the first step is that you will need to discuss the matter with your co-owner as you will require the co-owners signature on a transfer deed in order to transfer the land out of your name into the new names of the buyers. There is an alternative whereby you agree to hold your 50% share on trust for the new buyers that this may not be ideal in that it may not be acceptable to your buyers and it means that you cannot fully extricate yourself from ownership of the land which may be your wish.
Your co-owner cannot refuse you permission to sell your share of the land but on a practical level, can refuse to sign the transfer document required which would mean you may need to apply to the County court to force the sale.
Once you cross that bridge, you will need to consider the preparation of a business sale agreement (if you are selling your share of a going concern in addition to your share of the land or if it is just the land you are selling a sale contract for your share of the land. Are you able to confirm which is the case?
There is no actual transfer document.
Are you selling just your share of the land or that and your share of a going concern business?
My share of the Track, so the land and buildings really, the land it sits on doesn't belong to us just ground up
Thanks. To whom does the land belong?
The track is a non profit thing, we bought just for fun as i was a racer years ago
The land belongs to a Man called Mr Merrik who is i believe the ex sheriff of kent
Thanks so do you lease the land or do you have a licence to occupy the land or is the arrangement informal?
its an informal "gentleman's agreement" with the land owner. Yes we effectively lease the land, the track is just upon it in a sense
i pay the rent to the landlord Mr Merrik yearly
OK - almost there. Do you pay rent to the owner?
Thanks - but there is no written agreement? When did the rent payment start?
Payments for rent started when i bought off the previous owners who sold due to old age aprox 2 years ago. I have always paid by cheque for a record
just confirming a date on which i took ownership
date i took ownership was 18.02.2012 so i would of paid the rent in june or july 2012 onwards
Thanks. based upon what you say, if the site is not operated as a business then you are likely to hold what is known as a common-law periodic tenancy for the land which runs year to year if rent is paid yearly, and the owner would have to give you a clear one year notice to vacate which must end the day before rent is paid - so this is likely to be more than one year in practice.
ok so i have a right if i was to get kicked off you mean?
The owner could not just kick you off - he would need to supply the above minimum notice to require to vacate. if you could demonstrate that you are running the site as a business, then you may have security of tenure and a right to renew your tenancy even if the landlord wants you to leave but this only applies if you are running the site as a business.
excellent, i can let the new owners know of this fact.
In selling you would likely need to assign the tenancy to the new owners and transfer your ownership of the equipment and facilities on the site. In addition if you are accepting some of the money at a later date there is the question whether you would want any security for the debt from the new buyers.
what do you mean " security for the dept"?
If the new owners are not to pay upfront but are to pay by installments, they will owe you a debt. If they do not pay what is agreed this means you would have to pursue them in court unless you have security - e.g. they give you a charge over some propertty they own (similar to a mortgage). If there are a number of them you may be happy that there are enough of them to cover the debt if you had to pursue it in court.
I have my old purchase agreement i can use, but this has to have added to it that "ownership does not fully pass over to the club until the full 12.5k has been received. if payments has not been received by 36 months then the track and contents reverts back to me"
right understood about the security on dept, there won't be any
This is not a straightforward transaction to draft or document and you really should ask a solicitor to act for you particularly as you are not going to be paid up front. There are documents you could attempt to use (such as the below) but it would be risky to attempt to draft the documents yourself. http://www.lawdepot.co.uk/contracts/lease-assignment-form/
You could adapt the above document to fit your requirements but it would require quite a bit of reworking for it to cover all the issues above.
Ideally you would consult a local commercial property solicitor who should be able to deal with this for you for around £750 + VAT +/-
wow....ok i have have to try and rework the document i guess
If I can assist any further please do let me know. Is there anything else I can help you with for now or does the above answer your questions satisfactorily?
is there any other sites you can direct me towards for mock hire purchase agreements or similar?
That site is the only free one I am aware of. They do have a business sale agreement which may of some assistance here:http://www.lawdepot.co.uk/contracts/business-purchase-sale-agreement/?loc=GB
And a slae of possessions here:http://www.lawdepot.co.uk/contracts/bill-of-sale/?loc=GB
Thanks Joshua. How does this work, can i just speak to you by logging on again?
If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though. this will also save the thread to your account and you can access it anytime from your customer home page or link in your email.
thank you, ***** ***** now :)
Many thanks and good luck with the sale