Collectively Purchasing your Freehold
The right provided by the 1993 Leasehold Reform Act (as amended) is for the enforced sale of the freehold of a building and lands, to a special company set up by the leaseholders – the Right to Enfranchise Company (the RTE Company).
The formal procedure for Collective Enfranchisement is started by the service of the initial Notice on the landlord; it then follows a prescribed route. Although this is the beginning of the statutory procedure the service of the notice should follow a period of preparation to ensure that the participating leaseholders are fully equipped to complete their application.
Qualifying as a leaseholder
* The present unexpired term is not relevant, qualification is governed by the original term of the lease when first granted.
But, even if the leaseholder satisfies these criteria he or she will not be a qualifying leaseholder if any of the following cases apply.
There is no right of collective enfranchisement (but there is a right to renew the lease) where:
* the building is a conversion into four or fewer flats and not a purpose built block
How much will the freehold cost
In considering the likely purchase price, the leaseholders’ liability for the landlord’s costs should also be borne in mind. The eventual cost to each leaseholder will be the share not only of the cost of the freehold but also of both the landlord’s and leaseholder’s legal and valuation costs.
We are able to offer specialist advice.
Call 01323 720142 now for a consultation with a specialist Solicitor or a Lawyer at Lawson Lewis Blakers.