Wallace & Co. Solicitors and Notaries.

Q5. Should we buy the freehold in the name of a company or in our own names?

A5. It is usually best to buy the freehold in the name of a company, even if there are only two flats. The main advantages are:-

(a) Once registered, the freehold deeds never need changing again.

(b) When a flat is sold the owner merely signs a simple form to transfer the share in the company. If you take the freehold in your personal names, each time a flat is sold the freehold has to be transferred to include the names of the new flat owners. This involves a fresh application to the Land Registry, paying a new Land Registry fee (current minimum £40), getting a transfer signed by all the leaseholders (some of whom may not live at their flats and may be difficult to contact).

(c) It is easier to grant longer leases

It is true that the initial costs are a little more for a company. An annual return has to be filed at Companies House, but the filing fee is small and Companies House sends a form printed with the current details so that only changes need to be notified.

Wallace & Co., Solicitors and Notaries. 11a Station Parade, Balham High Road, London, SW12 9AZ (entrance in Ravenstone Street).
Tel: 020 8675 6755. Fax: 020 8675 2001.
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