Buying your Freehold

Flat Blocks

In order for the Leaseholders to qualify to serve a statutory notice via Leasehold Reform, Housing & Urban Development Act 1993, as amended by the Commonhold & Leasehold Reform Act 2002, to acquire the Freehold, at least 50% must participate. The original lease term of each property must have been in excess of 21 years when initially granted, the building must be vertically divided, with any non-residential areas not exceeding 25% of the total gross internal area of the block. In addition, in the instance where there are only two registered leases within a building and the Freeholder is resident in one of these properties as their main residence, the other Leaseholder is exempt from petitioning to enfranchise.

We would advise the Leaseholders to establish a nominee company of which the participating leases would be the Shareholders, to support the statutory notice. They should arrange to enter into a Collective Participation Agreement, which will bind all Parties to proceed to completion, with further consent to issue new 999 year leases for all participating leases on the date of the enfranchisement, at a Peppercorn annual Ground Rent. They should consider how they will arrange the funds to cover any element of the cost for leases that do not participate. We would recommend this investment be secured via the issue of a new Head Lease of 999 years, at a Peppercorn Ground Rent, to the Party providing the monies. This Investor should also be bound by the Collective Participation Agreement.

We will need to provide you with a valuation to identify the likely cost of buying your Freehold. We will then negotiate the premium to buy your freehold.

You will also need to instruct a Solicitor to draft and serve the statutory notice. They will also agree the transfer of the freehold title.

In the event you do not proceed with the claim, you cannot re-apply to buy the freehold, for a period of 12 months.

You will be liable for the Superior Landlords recoverable costs. Essentially, you are obliged to pay their valuation fee and legal fees, to grant you the freehold.

Houses

If the foundations and loft space are within the demise of your existing lease, your house is vertically divided and the lease was longer than 21 years when it was originally granted, you can serve a statutory notice under Part 1 of the Leasehold Reform Act 1967, to buy your freehold.

We will need to provide you with a valuation to identify the likely cost of buying your Freehold. We will then negotiate the premium to buy your freehold.

You will also need to instruct a Solicitor to draft and serve the statutory notice. They will also agree the transfer of the freehold title.

In the event you do not proceed with the claim, you cannot re-apply to buy the freehold, for a period of 12 months.

You will be liable for the Superior Landlords recoverable costs. Essentially, you are obliged to pay their valuation fee and legal fees, to grant you the freehold.