Sign up to post in the forum. It’s Free.
Or Log in.
If you are eligible to apply to buy your freehold, (known as the right to enfranchise or collective enfranchisement), the most crucial time is before your lease falls below 80 years which is the same boundary line as for extending your lease. As you may be aware, it is at this stage that the level of premium paid for the freehold increases and you share any profit with the landlord.
When you know collective enfranchisement for your home or block of flats is for you, get an initial appraisal or enfranchisement valuation report from a surveyor. Find one who is experienced in enfranchisement work. This document will prepare the ground for future negotiations. If you encounter problems and you have to go to a Leasehold Valuation Tribunal, you can use the valuation report as evidence.
Do some of your own research first so that you are familiar with the criteria – this will help you not waste time and might even save you money.
Create a list of essential collective enfranchisement questions which need answers:
1) Check the name of your landlord and his contact details?
2) How best does he prefer to be contacted?
3) Are you disputing or in disagreement with any service charges or management issues?
4) Have you attempted to reach an agreement with your landlord?
5) How many flats are in your block?
6) Have you spoken to the other tenants and asked what they think about the right to enfranchise?
7) How many have expressed a wish to be included in enfranchisement?
8) Does anyone own more than 3 flats and are there any non-qualifying tenants?
9) What is the size and type of the flat? ie: number of rooms and floor area.
10) How many years are left on the existing lease?
11) What is the amount of ground rent payable?
12) What does this cover?
13) Where is your flat located?
14) Is your block new? Was it purpose built as a block of flats or old and converted?
15) Are there any outbuildings such as garages?
16) Is there a garden area?
17) Do you know if any current planning applications for the property have been made?
18) Do you know an experienced lawyer who can handle collective enfranchisement?
19) Do you know of a qualified surveyor who is compliant with RICS regulations, or could your solicitor put you in touch with one?
20) Do you know the difference between informal, formal and desktop valuations?
Once you have this information to hand you will be in a stronger position from the start. You can try to informally negotiate a price with the freeholder. Or, by consulting your solicitor, start formal collective enfranchisement proceedings: serving a notice on the freeholder, setting out your offer price for buying the freehold.
One final question to ask: is getting the right advice more valuable to you than the cheapest route possible? Consult a solicitor now and make sure that they specialise in the right to enfranchise!
Bonallack & Bishop are a firm of experienced collective enfranchisement solicitors who can advise you on your right to enfranchise. Senior partner Tim Bishop has grown the firm by 1000% in 13 years and has plans to expand further. He is responsible for all major strategic decisions and sees himself as a businessman who owns a law firm.
Sign up to post in the forum. It’s Free.
Or Log in.