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Share of freehold: 3 flats, 5 people

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  • Share of freehold: 3 flats, 5 people

    We found ourselves in a pretty weird situation. We live in a flat in a converted Victorian house; There are 3 flats in total - ground, first and top floors. It's Share of freehold.
    In 2022 there was 1 person in the top floor flat, 1 person on the first floor and 2 people on the ground floor (4 in total).
    We (me and my partner) bought the first floor flat in 2022.
    Now, our neighbours from the ground floor decided to sell their flat to another couple. They found out that back in 2022 Freehold Title Register was transferred solely to us. So only me and my partner are registered owners of the freehold of the property (the other 3 people are not in there). I'm not sure how this has happened, trying to chase the solicitors.
    The problem is that we are told - there could be no more than 4 people on the register. But, in fact, there are five of us (1 - top floor, 2 - first floor, 2 ground floor). Ground floor neighbours insist one of us (me or my partner) gives up the space on the register for the new buyers because they are an unmarried couple.
    I'm not that proficient in property law, but it feels like it can hit back to us.
    What are our options? I guess in the long term, it's creating an LTD company so that the limitation of 4 people is gone. But in the near term, how dangerous is it for us to just leave one of our names on the freehold title?
    Tags: None

  • #2
    One arrangement would be one name on the freehold title for each flat. If any flat has 2 or more owners, the nominated person should execute a declaration that he holds his interest on trust for all the owners of his flat.

    Alternatively, a limited company with one share per flat. Shares can be jointly owned.
    Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

    Litigants in Person should download and read the Judiciary's handbook for litigants in person: https://www.judiciary.uk/wp-content/..._in_Person.pdf

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    • #3
      Thanks!
      I was thinking that creating an LTD was the only reasonable route, but what you say - one name on the freehold title for each flat - totally makes sense, and I'll propose this resolution too. Actually in TR1 section 10 all people are listed under declaration of trust. So I guess going with "the nominated person should execute a declaration that he holds his interest on trust for all the owners of his flat" wouldn't be a big change anyway for the paperwork

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