As a landlord: Your leaseholders may have approached you wanting to buy the Freehold; or served you with a Section 13 Notice of Claim (Freehold Purchase). Alternatively you may decide to sell the freehold of a building containing flats. In any sale of the freehold you normally have to give the leaseholders the first chance to buy. This is known as Right of First Refusal*.
As a leaseholder: buying the freehold of your property can increase its value and saleability; your flat can be sold with a Share of Freehold. By owning the freehold you will benefit from much greater control over the management of the building.
Also known as Collective Enfranchisement. Owners of leasehold flats have the legal right*, collectively, to buy the freehold.
Freehold Purchase can be a complicated process that requires professional and expert assistance. Each Side Leasehold provides valuations for freehold purchase of both flats and houses; or where the Freeholder wishes to sell the Freehold (- Right of First Refusal).
We will guide you through this complex process and help obtain the correct premium or price.
The cost of the freehold comprises:
- Compensation to the Freeholder for the loss of a ground rent income and the value of the flat when the lease term ends.
- Additional Compensation may be payable for any other loss arising from the Freehold Purchase. This may include hope value for additional flats or lease extensions to be built on the site owned by the existing freeholder.
In order for flat owners to purchase the Freehold, at least half (50%) of the qualifying flat owners must participate. If there are only two flats in your building then the law states that both flat owners must participate.
You should always be aware, that if some leaseholders don’t want to join in with the Freehold Purchase, then those participants that do will still need to fund the other’s share amongst themselves.
Once completed, the lessees effectively have full ownership and control of the building and can grant themselves 999 year leases.
Specialist RICS registered valuers for freehold purchase
Each Side Leasehold are independent RICS Registered Valuers, and we specialise exclusively in collective enfranchisement (Freehold purchase) and Lease extensions. We also provide freehold/leasehold valuations for Inheritance Tax and Capital Gains Tax purposes.
We are able to guide and support you through this process and help obtain the correct premium or price. Working closely with legal professionals throughout to ensure the process goes as smoothly as possible; we can liaise with your solicitor, or recommend local solicitors with specific experience in this process.
Based in Newdigate, between Reigate in Surrey and Horsham in West Sussex; we’ve helped many satisfied clients across South London, Surrey, Sussex, Kent and Hampshire.
We know this all seems a scary prospect, but we’re friendly and approachable, so don’t be afraid to pick up the phone.