Flat confusion - LTC

Barb asks:
(updated on Friday, April 13th 2012)

I have been looking at LTC information lately and I see that companies who want to become a LTC cannot be 'flat owning companies'. Does this mean a company which was set up to own rental property as an investment is not able to become a LTC?

Our Experts Answer:

No but I accept this is confusing. A flat owning company is not a company that owns flats for the purposes of this rule. A flat owning company is a relatively uncommon type of freehold title that was popular in some older apartment blocks where owners hold a share in a company that owns the building rather than a conventional title. The share conveys their ownership of the unit. You can breath again!

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