Forming a Management Company

[Jacob Oliver]

I am about to purchase the freehold of a block of 4 leasehold flats.
The purcahse price had been agreed. I presume that I have now to appoint a solicitor to act on my behalf.

Can I reduce costs by forming my own managemet limited company which will be responsibe for the management, insurance etc.

Jacob OLiver

[P.Pilcher]

Professional advice from an accountant is the best way forward: you will invaraibly need to instruct a solicitor with regard to the actual purchase.

P.P.

[Paul_f]

Jacob,

Your first point of call should be an Independent Financial Adviser. It's extremely tax efficient to put something like this into a SIPP (Small Individual Personal Pension [I think!]). You will pay far less tax and avoid CGT when you sell any of your portfolio. From April next year residential property can be included for an individual in their portfolio but a limited company can I think do it now. Some of this might not be too accurate but Yardley Star who is one of the posters on the forum is an accountant and will know. Try and e-mail them directly if you can.

There's bags of information on the web and there are freeleaflets to be had from your local IR office too!

[Poppy]

Good luck with your purchase.

I own a block of 3 flats. I do not have a management company. I manage the property, insure it and collect ground rent and service charge.

Why do you particularly want to set up a management company?

[Jacob Oliver]

Thank you to P Pilcher for his comments yes I reluctantly agree that a solicitor should be involved but I did think and ask are you are able to form a company without solititors costs?

Thanks also to ever helpful Paul F for his advice re SIPP I will look at this

With regard to the poster who has not formed any company how will he manage when he comes to sell say just one of his properties?

Jacob Oliver

[willf]

SIPP = self-invested personal pension

in case you're interested Paulf

need 50% deposit as far as i'm aware, which is quite a barrier to most people

[Jacob Oliver]

Willf 50% of what?

I have just visited a SIPP web site although very quite helpful it does not say how it works

I obviously need to take advice, but then the clock starts ticking!

Jacob Oliver

[Poppy]

I am about to purchase the freehold of a block of 4 leasehold flats.
Jacob OLiver

With regard to the poster who has not formed any company how will he manage when he comes to sell say just one of his properties?
Jacob OLiver
Are you referring to this poster?

You originally said you are buying the freehold (therefore presumably not the leases). Are you actually buying the leases too? In that case, yes you can sell just one of those.

[Jacob Oliver]

Continueing this thread I am the leasholder of a block of four self contained flats (all have their own entrances)
"Another party" owns the fouth leasehold flat.
All four are let - AST agreement
Q - Am I able to purchase all four leasholds?
Q - or am I oblidged to give the "Other party" a opportunityto buy there 25% share?
q - Or is the present freeholder oblidged to offer the "Other party" their 25% share?
The 25% share being their leasehold falt. So the holding would be 75% and 25%.

Jacob Oliver