Amendment/Clarification of lease

Amendment/Clarification of lease

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Hi All,

Here is the situation:

Development of flats completed in 1993 with a master lease including the transfer of the freehold to the Residents Association Ltd company attached to each flat..

Individual flats now owned by various people, some as owner occupiers and some as buy-to-lets. Owners hold equal shares n the company and are(or should be) directors. Not all are.

During the proposed sale of one of the flats, the purchaser's solicitor noted that the wording of the lease was contradictory and could be interpreted as prohibiting sub-letting. Others interpret it to mean an owner can only sub-let a whole flat and not part of it. The upshot is that the solicitor advised his client not to proceed and the sale fell through.

As a result, several of the owners want to get this clause in the lease clarified, and as the Residents Association Ltd is the freeholder, they plan to hold a meeting of the company(quorum 2 directors) and pass a resolution to clarify the situation.

Does anyone have an opinion as to whether a simple resolution of the company(Directors? Shareholders?) would suffice and, if so, what form of words should be used? Presumably, a separate resolution would have to be passed for each flat.

It has also been suggested that the company could also pass resolutions increasing the length of the lease for each flat at the same time.

Many thanks in advance,

David

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By WhichTyler
06th Nov 2014 12:27

Legal question, not accountancy...

I'm afraid

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