[BNM] [OT] Freehold purchased... lease/ltd. company needed?

[Chris Billett]

Thanks for the tips - if anyone does have a number of someone I can  
ring for advice on this it'd be great. Anyone who isn't our solicitors  
who took six months getting this purchase through, that is!

Cheers,
CB

On 21 Aug 2008, at 16:42, Jonathan Hirsch wrote:

> Hi Chris,
>
> You probably need to form a management company for the property
> (assuming one doesn't already exist - whoever you bought the freehold
> from should know), with you and the other freeholder owning one share
> each and agreeing to each pay an annual maintenance charge, which
> goes to cover communal stuff like insurance and a sinking fund for
> roof repairs etc. When one of you sells up, their share is
> transferred to the buyer. One or both of you would need to be a
> director, and you'd need a company secretary - usually you'd appoint
> a managing agent to take care of everything, but as there's only two
> households, that might be overkill... I'm not really up to speed on
> how you set up a management company, or whether you legally have to
> have one for only two flats, but a standard Ltd Co can be set up for
> about £50 to £100 - pretty much any accountant should be able to sort
> that for you. NB you *may* (I'm not sure - probably depends on the
> specifics of the property) also need public liability insurance (for
> when postie falls down any communal steps etc.). Chances are your
> individual home policies won't cover that (or at least, each
> insurance company would try to pass responsibility onto the other...).
>
> Probably worth speaking to a few managing agents - they should be
> able to give much better advice than I can! I don't know who's who
> round here, although if anyone on the list can recommend a good one,
> I'd be interested as we (the management company where I live) have
> been talking about getting a new one for ages (our current one isn't
> local, which isn't ideal).
>
> HTH,
>
> Jon
>
>
> On 21 Aug 2008, at 16:11, Chris Billett wrote:
>
>> Might BNM Brain, I have a question:
>>
>> Myself and the guy upstairs (he bangs on the floor occasionally and
>> yells for his breakfast, n' something about a trap door?) have just
>> purchased the freehold on our flats. It's a house, split into two
>> flats, and we've got a fifty-schfifty split. We want to get  
>> structural
>> insurance in place before I inevitably burn the place to the ground
>> trying to re-heat Thai after a night in the Bee's Mouth, but  
>> everyone'
>> being difficult as we need to form a limited company or something -
>> has anyone been through this process? Do I need a solicitor? I'm  
>> not a
>> fan of them. I'd rather get this done in a matter of hours than  
>> weeks,
>> too. Are the insurance companies who will make this easier or am I
>> being a naive fool.
>>
>> Well, ta in advance for any tips. I'm sure someone's been there/done
>> that.
>>
>> CB
>>
>
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