We are contemplating buying the Freehold as we have received a Section 5 Notice offering us the 1st right of refusal else the Freeholder has nominated another buyer. My questions are: 1) assuming all parties were interested in purchasing their share what would we each end up having to pay? 2) Would all the shares be equal?


The answer to question 1 is A - that would be up to you as shareholders in the new freehold owning company to decide, some choose 1/9th, some choose to do it by relationship to flat sizes or flat values, in valuation terms it is normal for valuers to add a notional 1% enhancement to flats value by virtue of them owning a share of freehold The answer to question 2 is A - yes they should be as once you have achieved a level playing field by either paying in a 1/9th share or paying differential premiums to the purchase, the company will operate better in the spirit of equal share decision making after that. So you deal with any inequity in the initial share premium, not in voting for the next 99 years etc..

Miss Azami, NW8