Are you flat owners? Make use of the Leasehold Reform, Housing and Urban Development Act 1993 and buy freehold of the building.
If your answer is yes to all 4 questions, you qualify. Even if you don’t reside in the flat, you are still entitled to buy under the Act.
Once qualifying leaseholder of at least 50% of the flats in the building have agreed to the buyout, you can proceed to buy the freehold. If there are only two flats in the building, both flat owners must agree to buy the freehold.
You will need to decide how you as a group are going to purchase the freehold. You can either nominate yourself, a fellow flat owner or the freehold company which you have set up for this purpose. The nominated person or company will be the ‘nominee purchaser’.
You initiate the purchase process by serving a ‘section 13 notice’ (see below) on the freeholder of the property. You have to state the purchase price on the notice. Therefore you should obtain a freehold valuation before serving the notice.
Once you have obtained the valuation, you will then serve a ‘section 13 notice’ on the freeholder, advising that you and other flat owners are buying the freehold. You may choose to negotiate your freehold purchase with the freeholder before serving the notice.Once you have served the notice:
The freeholder has two months to respond to the notice by serving a counter-notice. The freeholder may:
What if the freeholder is missing? If the freeholder is missing, you can apply to the First-Tier Tribunal(property chamber) to make an order of sale or a vesting order. You will need to take steps to trace the freeholder before making such application.
The freeholder may dispute your proposed purchase. Such challenges could include:
If the freeholder does not agree to your purchase on an amicable basis, you can apply to the First-Tier Tribunal(property chamber).
You will need to decide whether you wish to manage the property yourselves or hire managing agents. The Ringley Group offers property management services. Visit Ringley Chartered Surveyors website
As Solicitors, Ringley Law handle and case manage a broad range of litigation matters at Court and Tribunal. For advocacy we have relationships with all the leading Barristers Chambers to best present your case.
Where is it going to go though? No obvious space on the Legal website.
Clubbing together to buy the freehold puts you in charge.....
You need 50% of the block on board, and thereafter can grant yourselves long leases and choose the management arrangements that suit you.
Why not talk to one of our Solicitors today
0207 428 1977 Email us