Wallace Helps Flat Owners Rebuild Homes At Double the Size for Minimal Cost
Wallace Helps Flat Owners Rebuild Homes At Double the Size for Minimal Cost
The Wallace Corporate and Property teams have helped eight Clapham neighbours demolish their council block and rebuild their homes at double the size. The new flats were completed in 2016. The original 8 flat building was replaced by 16 flats and maisonettes each with its own private outdoor terrace or courtyard. To protect everyone‘s interests a special purpose company vehicle was set-up and each property owner became a shareholder in the company. The property owners sold their old flats to the company and then bought their new flat from the company, once they were completed. The extra eight flats that were included in the rebuild sold easily and the profit from the sales was ploughed back into the company to fund bigger homes for the original flat owners.
Charlotte Wheeldon, Corporate Partner worked with the client over a period of 2 years preparing the legal documents in relation to the project, predominantly consisting of the shareholders' agreement between the owners which was bespoke and unusually complicated due to a profit share element with the builder. James Brand, Property Consultant, assisted Charlotte with the development agreement.
Adam Street, the flat owner who initiated the scheme commented:
“Charlotte’s expertise was critical in both the drafting and negotiation of the development management agreement, taking a commercial but pragmatic approach enabled a successful negotiation with the development partner.
Additionally, Charlotte’ style was critical in helping the existing owners understand and sign up to the complex shareholder agreement, as it had to protect them as shareholders in the company over and above them also being leaseholders.”