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Company for purchase of freehold

Company for purchase of freehold

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There are 8 flats who own a limited company that deals with the maintenance of a block of flats

7 of the 8 flats now want to purchase the freehold.  Can this be done with the sale limited company but with a different class of share?  My feeling is that they will need a new limited company for this

Also presumably the shares would be purchased at a premium, depending on the cost of the freehold and associated costs.  As opposed to shares being purchased for £1 and then having shareholder loan accounts?

Thanks in advance

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By taxguru
10th Jun 2016 07:34

Thanks for this news item, and for sharing your feelings!
If you have a query please let us all on here know.

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By bernard michael
10th Jun 2016 09:27

What does the 8th flat want to do??

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By Comptable
10th Jun 2016 16:20

1 form Newco with 7 shareholders
2 issue share at par with balance of purchase price as loans fro 7 shareholders.
3 extend leases on 7 flats
4 wait until 8 wants to extend or sell (when building society will require extension). Make him pay full market value for extension.
5 pay tax if any on sales proceeds and use balance to repay loans.

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