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Buying the freehold in a block of flats

(4 Posts)
ovenisdrivingmecrazy Wed 25-Jan-17 18:01:13

We recently bought a flat in a house converted in to 8 flats. The residents have decided to consider buying the freehold and we have had a surveyor to estimate costs of buying the freehold for each participating flat. The costs of the freehold vary wildly between each flat.

Out of the 8 flats one is definitely not participating.

I'm now totally confused by how the money works. If another flat decides not to participate do we have to cover their costs? Do we each pay the cost for our own flat + solicitors fees? Or do we divide the total cost by 7?

Anyone with any experience of this really appreciated. I've done some research this afternoon but it's just left me more confused. Or maybe my questions are so stupid nobody else is thinking them? blush

lalalonglegs Wed 25-Jan-17 20:05:30

I'm no expert but, ime, the participating flats generally buy the whole freehold and split the cost (sometimes there will be a difference in price depending on the size of each flat). If the non-participating flat owners later want to buy a share, then that money is divided between the people who originally bought the freehold.

LBOCS2 Wed 25-Jan-17 23:19:21

Exactly as LaLa says.

What will happen is the leaseholders will set up a freehold company to which shares are issued. You will only be entitled to a share in the FH company if you contribute to the cost of the freehold purchase.

The freehold is sold as one entity, not as little bits. The cost will be X amount for the whole freehold, and it will be up to you and your neighbours how it's divided up. I have seen it done by square footage, by number of bedrooms and by years left on individual leases.

The leasehold advisory service almost certainly has a fact sheet on their website too.

ovenisdrivingmecrazy Thu 26-Jan-17 07:27:43

Thank you both

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