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Freehold purchase

Freehold purchase is a scheme where a group of lessees buy the freehold of the building they live in, and manage it themselves or appoint their own managing agent to manage the property.

The scheme is sometimes known as collective enfranchisement.

How do you qualify?

• The building must be self-contained, and have at least two flats in it.
• At least two thirds of the flats in the building must be sold.
• At least half the number of flats in the building must take part in the purchase.
• Where there are only two flats in the building, both lessees must participate.
• No more than 25% of the building can be for non-residential use (for example, shops).
• If a lessee owns more than two flats in a building, they can't participate.

 

How does the scheme work?

You serve a notice on the council, usually through a solicitor. The notice will include the price you propose to pay for the freehold, and should be based on a professional valuation.

If we agree that you have the right to buy the freehold, we arrange our own valuation of the freehold. Once terms are agreed, the sale can proceed.

We take leases on any flats in the building that have not been sold.

You will have to pay our costs, even if the sale does not go through.

What are the potential advantages of buying the freehold?

• The ability to organise works to the building yourselves.
• The ability to extend your own leases at low cost.
• Possible lower service charges.
• An increase in the saleability, and possibly the value, of your homes.

 

What responsibilities would we take on?

Your responsibilities would include -

• Managing the day-to-day running of the building.
• Organising general maintenance.
• Arranging for major works to be carried out.
• Collecting service charges.
• Insuring the building.

 

How can we get more information?

Visit the Leasehold Advisory Services website. You can also download some information here.