Bowers Freeholders Ltd

  • Aims
    • To form a limited company to hold the freehold for the 8 flats for Bowers Avenue Flats
    • To have the right to manage the flats to the level we require

What we can do

Current State

  • Ground Rent, £661
  • Insurance,      £400
  • Sublet Fee      £120  (Per year £1240.83)
  • Edge Management Fee £1578.93 (per year)
  • Lease left on our leasehold 113 years

Proposed 

  • Ground rent      £ 20  per flat per year
  • Insurance       £200 Per flat per year
  • Sub let fee       £10 Per flat per year
  • Management fee £1000 per year
  • Lease increased to 999 years

Reduction £1500 per year

What is the cost of this? £120000 in total approx.

  • Additional benefit everyone will get a 999 year lease
  • The value of flats will rise by at least £10,000 when we sell
  • Easier mortgage as ground rents no longer an issue
  • We can choose the level of management
  • We will need 4 unpaid directors for the company to ensure everything progresses well.

What if you cannot pay £15000?

  • The freehold will be held by Bowers freehold company (not by any single individual).
  • Rules will be written in to ensure we are all happy and noone is disadvantaged.
  • This company will have to provide yearly accounts and other documents

Those who want to contribute

  1. Ground rent will be £20 – 30 pounds per year increase by CPI/ RPI
  2. No sublet fee
  3. Leasehold will be increased to 999 years

Those who do not want to contribute

  1. The ground rent will remain at current level (approx £660 per year)
  2. It will rise by retail price of Inflation (RPI) or CPI whichever is higher every year (approx 2 -3%)
  3. Sublet fee remains at £120 per year
  4. Lease remains the same and you can apply to increase it at a later date

Costs of obtaining the freehold

  1. Valuation £500 *8 £4000
  2.  Solicitor fee             £5000
  3. Admin costs             £1000
  4. Freehold cost          £110000

Recurring costs

  • Accounting costs    £1000
  • Gardening                  £500
  • Maintenance           £3000
  • Utilities                      £500
  • Cleaning / painting  £500
  • Buffer amount        £1000
  • Accounting              £ 700
  • Book keeping          £400
  • Misc                           £400

Total                               £8000