I'm in the process of regularising an old headlease situation.
The structure is:
freeholder -> 4 previous tenants (from 15-20 years ago) on as headlease owners -> 4 subleases for 4 flats.
Besides insurance, most maintenance is the responsibility of the headlease owners. We, the 4 flat owners, would like to take over the headlease from the current owners (former flat owners who want to get rid of it). In the future, if we sell, we would like to transfer our share of the ownership to any new flat owners.
Should we:
A) Take over the headlease as 4 tenants (as it was apparently originally done, 4 tenants jointly and severally).
B) Or should we set up a company, transfer the headlease to the company, and make the 4 flat owners directors of the company?
What are advantages/disadvantages of A v.s. B ?
Either way we want to set up a company structure to manage the maintenance. But that can be done under A) or B).
Any further tips or links to posts where this is explained?
The structure is:
freeholder -> 4 previous tenants (from 15-20 years ago) on as headlease owners -> 4 subleases for 4 flats.
Besides insurance, most maintenance is the responsibility of the headlease owners. We, the 4 flat owners, would like to take over the headlease from the current owners (former flat owners who want to get rid of it). In the future, if we sell, we would like to transfer our share of the ownership to any new flat owners.
Should we:
A) Take over the headlease as 4 tenants (as it was apparently originally done, 4 tenants jointly and severally).
B) Or should we set up a company, transfer the headlease to the company, and make the 4 flat owners directors of the company?
What are advantages/disadvantages of A v.s. B ?
Either way we want to set up a company structure to manage the maintenance. But that can be done under A) or B).
Any further tips or links to posts where this is explained?