Leasehold Property Management Limited

Information About Buying your Freehold

BLOCKS OF FLATS
 
If you are the leaseholder of a flat there is legislation in place where under certain criteria you can, as a qualifying majority of leaseholders in your block, make a claim to buy the freehold. This is known as Collective Enfranchisement. On a successful claim the qualifying majority, usually organised as a limited company, purchase the freehold for an agreed premium, or sum as determined by Tribunal and become the new landlord of the property. The company/qualifying leaseholders become responsible for all of the landlords liabilities, covenants, property and liability insurance and management responsibilities under the terms of the title and leases – including those of any non-participant leaseholders.
 
In addition to the premium payable for the property, the claimants (qualifying majority of leaseholders) will have to pay the landlords legal and valuation costs, land registration fees and Stamp Duty (if applicable) as well as their own costs. 
 
It is not possible for a leaseholder in isolation, or less than a qualifying majority, to enfranchise. 
 
This area of legislation is complex and we recommend seeking independent legal advice. LPM acts for the landlord and are not able to provide legal advice.  
 
Our clients will not usually agree to a voluntary sale of freeholds of blocks of flats due to the complications in remaining compliant with legislation however, in certain circumstances, if 100% participation can be demonstrated, it may be possible to transact a sale outside of the legislation, subject to an agreement on the premium and terms and including the payment of all the landlord’s costs. You can contact LPM in the first instance to see if this is possible at sales@lpm-uk.com. Please note that there would be an assessment fee payable before the landlord provides terms, under which they would be willing to dispose of their interest. 

 
HOUSES
 
If you are the leaseholder of a house and you wish to buy the freehold there are two options. 
 
Statutory Enfranchisement is a claim made to establish eligibility to buy your freehold at a price agreed, or determined via Tribunal proceedings. In addition to the premium payable for the property, the claimant (leaseholder) will have to pay the landlord's legal and valuation costs, Land Registration fees and Stamp Duty (if applicable) as well as their own costs. 
 
This area of legislation is complex and we recommend seeking independent legal advice. LPM acts for the landlord and are not able to provide legal advice. 
 
In some cases, particularly if there is urgency or time pressure to complete a transaction, if the leaseholder does not qualify for enfranchisement, or if there is a desire to reduce the costs and complexity associated with making a ‘formal’ or Statutory claim, our clients may offer you terms to acquire your freehold ‘informally’ or voluntarily (meaning outside of the constraints of the legislation requirements). If you would like to a voluntary offer from your Landlord, prior to your Landlord providing a price, as assessment fee is payable. If you would like to start this process, please e-mail as at sales@lpm-uk.com.  

 

 

Leasehold Property Management Limited