Leasehold
Apr 26, 2024

How Do I Buy The Freehold of My Flat?

The process of buying the freehold of a building with multiple flats is called ‘collective enfranchisement’. Here’s how it..

The process of buying the freehold of a building with multiple flats is called ‘collective enfranchisement’. Here’s how it works:

Rules

1. To join: 50% of flat owners must take part in the claim (both leaseholders for buildings with only two flats). Costs may be incurred by flats not participating, but at a reduced rate.

2. Commercial premises limitation: the commercial premises on ground floor can not exceed 25% of overall internal area.

Valuation

3. Each flat’s contribution: normally similar to individual lease extension cost. Development value can be added for parts such as loft spaces, cellars, extensions or parking spaces.

Legals

4. Serving Notice: this is served on the freeholder via a specialist solicitor and includes a low initial offer for negotiation; they appoint their surveyor and solicitor to respond with a counter-notice within 2 months.

5. Negotiations: these usually take 3 to 6 months; if agreement isn’t reached an application can be made to Tribunal which will often bring further negotiations forward.

Benefits

6. Control: management of block obtained after procedure and can be organised amongst leaseholders for smaller numbers, or through managing agent for larger groups.

7. Extension: short leases extended to 999 years for free after the process; dealing directly with fellow flat owners rather than a potentially obstructive freeholder makes handling extensions easier.

Conclusion

Overall enfranchisement provides control, flexibility and a chance to improve management and individual leases in building. So, contact us today to organise an RICS Registered Valuer for your collective enfranchisement.