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DO YOU WANT TO OWN YOUR FREEHOLD AND HAVE NO LANDLORD?

Are you interested in controlling your own destiny?

You have the right under the Leasehold Reform Housing and Urban Development Act 1993 (as amended) together with a group of fellow leaseholders, to buy the freehold of your building (through a process known as collective enfranchisement). Once the building is under your ownership, you have complete control to manage it as you see fit.

The Commonhold and Leasehold Reform Act 2002 states that the application and eventual acquisition must be through a Right To Enfranchisement (RTE) Company. However this provision has not yet commenced, and for the time being will be through a nominee purchaser. This nominee purchaser can be an individual, a group of individuals, or more usually a limited company setup, owned and controlled by the lessees.

We can act on your behalf to prepare and serve the Notice of Claim upon your Landlord. We can search for 'absent or intermediate Landlords' and assist in arranging for an independent valuation to be carried out if required.

ELIGIBILITY - FOR LESSEES AND THE BUILDING
We need to check that both the building complies and that there are enough qualifying leaseholders to be able to proceed. Details on 'leaseholder qualification' are set out below. In order for the building to qualify it must:

Not have more than 25% of the internal floor area of the property as non-residential, and

At least two-thirds of the flats must be let to 'qualifying leaseholders'

Realistically, the right to purchase the freehold will be exercised by a Right to Enfranchise (RTE) Company; the members of the RTE Company must equal at least half the total number of flats in the building. For example if there are 10 flats in the building, at least five of the flats of qualifying leaseholders must participate. Where there are only two flats in the building, both leaseholders must participate.  

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 and the same person has owned the freehold since before the conversion of the building into flats and he or an adult member of his family has lived there for the past twelve months.

  • The freehold includes any track of an operational railway, including a bridge or tunnel or a retaining wall to a railway track.

Some properties are completely excluded from the rights of lease extension and collective enfranchisement such as:

  • Buildings within a cathedral precinct.

  • National Trust properties.

  • Crown properties*

* Although the Crown is not bound by the legislation the Minister has made a statement to the House of Commons that the Crown will be prepared to comply with the principles of it.

ELIGIBILITY - QUALIFYING AS A LEASEHOLDER
To be a Qualifying leaseholder you must own a 'long lease', and not be a business or commercial tenant.  You do not have to satisfy a 'residency test' nor do you have to have owned the lease for any minimum period of time. A 'long lease', by definition, is:

  • A lease of a term of years absolute in excess of 21 years when originally granted - the present unexpired term is not relevant.

  • A shorter lease which contains a clause providing a right of perpetual renewal.

  • A lease terminable on death or marriage or an unknown date (including the so-called "Prince of Wales" clauses).

  • A leaseholder having held over at the expiry of a long lease, and the landlord has not served a notice terminating the tenancy.

  • A shared ownership lease where the leaseholders' share is 100%.

OTHER IMPORTANT INFORMATION
You should arrange your finances before you commence any procedures and should be aware that even where  you withdraw, you will still have to pay your own and the landlord's legal and valuation costs, and funds should be established for this purpose. It is recommended that leaseholders have a formal valuation carried our so they are aware of what the likely purchase price will be although this is not a legal requirement.

It is recommended that all participating leaseholders enter into a formal participation agreement that spells out rights of voting, terms negotiation and most importantly each leaseholder's financial contributions.

We naturally are unable to guarantee any application as being successful or for the amount of the eventual premium that may be determined by the Tribunal. You will be liable for the 'reasonable' costs of the Landlord relative to the Notice of Claim and the preparation / completion of the new lease together of course with the fees of any Valuer, solicitors etc. who you choose to instruct to assist.  

YOUR GUARANTEE:

If for any reason your application is refused by a mistake on our part, we will fully refund our fees.

OUR CHARGES AND SERVICES - FIXED FEES, NO SURPRISES
Probably the biggest concern of new clients is that they will have much legal and valuation work performed and then find that it is not possible buy the freehold, or that the purchase cost is excessive for them at present.

We solve this concern simply - For no charge, we will complete the necessary checks for qualification and entitlement - and also perform an estimated valuation of the purchase price of the freehold. At this point you will have a good idea of the purchase price payable to the landlord. (Note this is an approximate valuation, we would recommend the use of a formal valuation to be used the Initial Notice and subsequent landlord negotiations).

We would request from the Lessees the basic information needed for us to prepare the necessary paperwork. In addition to preparation we will also serve ALL the various Notices required. We will deal with the formation of the Right To Enfranchise (RTE) company as required (including so far as possible completing the forms for you) . Our fees are a flat £339 per flat. We do not charge an 'hourly rate' and all fees are clearly specified in writing, are entirely 'fixed' with no extras or additions in any way.

Please ensure you carefully read our Terms and Conditions covering this website and our services.

COMMUNICATIONS
Throughout each stage of the process, we will keep you fully informed. Both by providing detailed descriptions of the process, but also on the progress of each stage. For your convenience, we will provide electronic copies of all documentation.

WHAT NEXT?
Call us today on
020 8629 1066 or click here for no-obligation advice on how to increase the value of your flat by purchasing your freehold.

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