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Through collective enfranchisement, us leaseholders have acquired the freehold to a block of 9 flats via a single limited company. We had intended for all leaseholders to own a share, so we could extend the lease to 999 years and reduce the ground rent to nothing. But only 3 leaseholders (including me) ended up wanting to buy the shares and so I bought up the remaining 6 (making my share equal to 7/9). When the leaseholders that do not own shares extend their lease, how do we share the proceeds from that lease extension? Option 1: We share it as per the shareholding, so I get 7/9 and the other two shareholders get 1/9 each. Option 2: When I bought the shares, I effectively bought the leases of the other 6 flats so the proceeds of any their lease extensions go to me only. Before I get a lawyer involved, I wanted to work out what is the fair and correct way to handle this. And wonder how other shareholders of freehold companies deal with this situation. Any help would be appreciated.
