I bought our leasehold flat in the 80's in a block of 7 flats.
The freehold was bought for £60,000 by four of the leaseholders by setting up a Company limited by shares in 2007. Leaseholder Directors manage the freehold themselves.
I wish to buy the 20 shares in the company (provisioned for me) in order to extend my lease to 999 years. It is currently sitting at 63 years.
I checked with Company House for the Freehold Company documentation. I'm no expert, but there seem to be some inconsistencies.
The Articles of Association state that the Company share capital is total of 140 ordinary shares, £1 each. Each leaseholder can own a maximum of 20 shares in the company. (20 shares x 7 = 140 shares.)
A few years after the Company bought the freehold, the founding Secretary (solicitor) was tragically killed in a motor accident. Thereafter the Directors shareholdings changed.
Another leaseholder bought their 20 shares in the freehold company, bringing the total number of leaseholders in the company to 5.
The remaining unallotted 40 shares (2 flats) were then split amongst the Directors including founding Secretary (then executors). This exceeded their maximum 20 shares.
The following year when the founding Secretary's flat was sold, his additional ordinary shares were removed leaving the allotted 20 shares, which were sold with the flat.
There were no resolutions nor changes to the M of A of A with Company House.
Years later, two of the Director leaseholders sold their flats together with 20 shares. However, they retained the split-up additional ordinary shares which were allocated to another leaseholder and me.
My 20 shares are split between two ex-Directors (8 & 6) and one current (6).
The Director (neighbour) I'm dealing with is being helpful. However, he only moved in last year, and he only has few years of electronic records.(No paper records.) I thought the statutory requirement for keeping documentation is at least ten years?
I believe the premium I would pay goes to the shareholders.
My questions are:
Does the share allotment look correct?
What would be the fair cost for me to buy my 20 shares?