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How should leaseholders purchase their freehold?

5 out of 6 leaseholders have paid in to purchase a freehold. What is the best arrangement?

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5 out of 6 leaseholders have each paid £12,000 to a solicitor to pay for the purchase of the freehold.  They intend the freehold to be owned by a company.  The 6th leaseholder will pay ground rent.  How should the purchase be arranged so that the 6th leaseholder can buy in when funds allow?   My thought was that the freehold should be given to the company in exchange for 12,000 shares each (DR Freehold, CR Share Capital).  The 6th leaseholder could then purchase 2,000 shares off each of the other leaseholders giving them a small capital gain (if any). I've never seen a case like this so I am unsure of the technicalities.  Could the ground rent be paid to the service company that manages the block, so that the freehold owning company could be dormant?  Any comments welcomed!

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By memyself-eye
25th Mar 2020 19:18

Ask a solicitor?

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