We are a freehold company (5persons) a leaseholder who was offered a share of the company nearly 2 years ago(but did not take up the offer) has now put her flat on the market(has a buyer they are ready to exchange)buyer wants in on freehold(freeholders not willing to sell until after 2 year period as leasholder) our leaseholder is now making waves about her buying the share of freehold. Do we have to sell to her now that the flat is on the market with a potential buyer on the horizon? We are very reluctant to have someone we do not know being a shareholder at present
If the flatowner did not participate in the original enfranchisement then you are not obliged to sell a share in the freehold company to the non-participant.However, in the interest of good neighbourly relations (particularly with an incoming owner) and for the effective future management of the building the freehold company may decide to sell a share in the company - for a price. This will have to be agreed between the parties, but can also bring in valuable funds into the freehold company.The 2 year period applied to applications for a lease extension and the vendor flatowner could simply apply for the lease extension in her name prior to sale and then this can be taken up by the purchaser. So if well advised the vendor can deal with this issue and therefore it may not be your strongest point.Also, if the flat for sale were already a share of freehold then you would have to accept whoever the incoming flat owner is. You could not refuse to transfer the share.I hope this answer is helpful to you. Please select the green Accept button so I can receive credit for my time. Your question will not close and you can continue to ask for clarification.
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