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Aston Lawyer
Aston Lawyer, Solicitor
Category: Property Law
Satisfied Customers: 10412
Experience:  LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law
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My husband and I own a freehold flat (the bottom part of a three story house with a small

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My husband and I own a freehold flat (the bottom part of a three story house with a small garden. The people who own the upstairs flat is part freehold and part flying freehold. We currently have covenants covering the cost of any repairs which may need to be done and have to insure for this too. The people upstairs want to convert the whole house into a freehold and for each of us to have a lease on our properties.
How would be go about this and roughly how much is this all going to cost.
In addition to this my husband and I can planning to introduce the flat into a Ltd company and for our daughters to be shareholders with us (haven't yet decided the number we would each have.
Could you help us please
Submitted: 1 year ago.
Category: Property Law
Expert:  Aston Lawyer replied 1 year ago.
Hello and thanks for using Just Answer.
I am Al and am happy to assist you with your enquiry.
If your flat is Freehold, it would be best for you and your neighbour to convert the whole of the proeprty into Freehold and for you and your neighbour to have a Lease for your respective properties. This is because most Mortgage Lenders will not lend on Freehold flats anymore and therefore it is going to avoid any problems as and when you come to sell.
In short, the freehold of the 2 flats would need to be transferred into the name of a Management Company. The Company can either be limited by shares (whereby it would normally be the case that each Flat owner be a shareholder) or limited by guarantee, which means that each owner of each Flat will automatically become members. You both would have to emply a SOlicitor to set up the COmpany, and is likely to cost approx £400-£500.
Once the Freehold has been transferred, the Company will then grant long term Leases to you and your neighbour for each respective Flat. A Solicitor will need to sort this paperwork out and is likely to charge approx £800-£1,000 plus VAT for this work. There will also be a Land Registry for each Flat likely to be between £40-£90 depending on the value of the Flats.
As regards ***** ***** being involved as shareholders of the COmpany, I must say this would be unusual unless they all were named on the new Lease for your Flat. This is because the Management COmpany needs to be set up so that only the Flat owners are involved. This will avoid any problems as and when either you or your neighbour wish to sell.
It's therefore an expensive procedure, but is the ideal thing to do for you long term.
I hope this assists and sets out the legal position.
If I have assisted, I would be grateful if you could leave positive feedback.
Kind Regards
Al
Customer: replied 1 year ago.
The reason we want our daughters to be shareholders in the Ltd co we plan to set up is to help to avoid inheritance tax.
We would have our ltd company as a shareholder in the management company.
I am an accountant and could easily set up both Ltd cos to save legal costs
Expert:  Aston Lawyer replied 1 year ago.
Hi,
From a legal point of view,there is nothing stopping you/the Management Company granting a Lease of your Flat in the name of your own Company.
As regards ***** ***** position, you no doubt know more than me!
Kind Regards
Al
Aston Lawyer, Solicitor
Category: Property Law
Satisfied Customers: 10412
Experience: LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law
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