Granting new 999 year leases may be strategically incorporated into the Freehold purchase if there are reasons why you would want everyone at the site to have new leases, ie, if principal terms need varying, for example if there is no interest clause (no incentive to pay service charge promptly)
If more fundamental changes are require a complete modern lease could be substituted.
It should be noted in law that a lease variation of substitution cannot be forced on a party it has to be mutually consented to. However, if the resolution to grant new leases on x, y, z terms is approved by a Board of Directors it is only this type of lease/deed of variation that is available, until an alternative is approved.
A freehold shareholder cannot be forced to take this type of lease/varied lease and would be bound by the original lease until such time as they chose to participate. A clear incentive would be the ground rent reduction to a peppercorn.
Other considerations when we become freehold shareholders.
Once the Freehold is acquired, you may require further assistance with building works, legal aspects, company formation, company constitutional issues and/or the day-to-day management of the property.
Ringley can help, to find out more visit the following links:
With considerable experience in all aspects of property we can provide bespoke tailor made solutions for you or skilled help on specific aspects as you need it.