Enquiry into Buying the Freehold of a Leasehold property on the estate.

This enquiry into the possibility of buying a property freehold on the estate has proved an interesting and informative journey in itself going back to the actual title of the land in 1984 when the developer purchased the land from Hartlepool Borough Council.  The title shows the schedule of notice of leases for the proposed dwellings on the estate outlining the lease term, it also includes the current status of the lease term on each property.

The Sycamores Residents Association Ltd, was registered in 1989, and is ‘limited by guarantee’ which means that property owners have protection against any personal liability should the company run up any debts. A memorandum of association and articles of association were required for a company formed in the UK under the Companies Act 2006 and previous Companies Acts. The memorandum of association is the document that sets up the company and the articles of association set out how the company is run, governed and owned.

After comprehensive exploration into the possibility of buying a property freehold on the estate which has involved much research and communications with not only legal representative, but also Companies House, Gov.UK, Lease.org and, and others, a definitive answer has finally been obtained – put simply:

The owners of properties on the Sycamores estate cannot purchase the Freehold of their individual property under  the Leasehold Reform Act 1967 due to the fact that we already own the Freehold of the estate collectively. 

The salient points for this are as follows:

1)   When a property is sold on the estate, the purchaser automatically becomes a ‘member’ of the Sycamores Residents Association Ltd. 

2)   As a ‘member’ of the company, he/she actually owns a share of the Freehold of the whole estate therefore purchasing the freehold of an individual property is not an option. 

3)   Owners do not qualify for enfranchisement within the meaning of the Leasehold Reform Act 1967 as amended by the Leasehold Reform, Urban Development Act 1993, and the Commonhold and Leasehold Reform Act 2002, because as  ‘members’ of the Freehold Company (the SRA) we collectively own the freehold of the whole estate itself. 

Any relevant existing pages already included in the website will be updated with new information in the near future.   If any resident/member would like to look at a copy of the original title registered in 1984/5 for the Sycamores land which includes the original lease term information and current status, please don't hesitate to get in touch with me at lts@sycamores-estate.uk

 

May 11, 2020

Copyright  L Sherwood,  All Rights Reserved, 2017-2020