Buying a freehold
I want to collectively buy my freehold
Book your freehold quote today
The Leasehold Reform Housing and Urban Development Act 1993 entitles qualifying leaseholders to collectively buy their freehold.
Do I qualify?
You qualify if:
- 50% or more of leaseholders are participating (if there are only two properties in a block, then both must participate)
- The original lease must be in excess of 21 years
- Charitable housing trusts, properties in a cathedral precinct, etc are exempt
- If Freeholder converted / has lived there before and after conversion / been there for past 12 months
- There cannot be more than 25% commercial use
- It cannot contain more than two plots
- More than two-thirds must be qualifying tenants
- Vertical division
What is the process?
- Instruct a solicitor to draw up a participation agreement.
- Instruct a surveyor to carry out a valuation.
- Instruct a solicitor to serve a Section 42 notice.
- The freeholder has a maximum of 2 months to respond with a Section 42 notice.
- Instruct a surveyor to negotiate a fair and reasonable premium.
- If a premium is not agreed before 6 months has passed from the Section 42 Notice, this is the latest an application to the First Tier Tribunal can be made.
- Solicitors agree terms of the new lease.
- Upon agreement of the terms, there is 4 months to complete the process.
Under the Leasehold Reform, Housing and Urban Development Act 1993 qualifying leaseholders are entitled to purchase the freehold as long as there are 50% or more qualifying tenants participating in the enfranchisement claim. The original lease must be in excess of 21 years. Read More...
To discuss the process in greater detail and receive a quote, contact one of our experts.