Buying The Freehold Of Your Building (Collective Enfranchisement)
Hockfield & Co. Solicitors represents individuals in Kennington and throughout London who wish to either extend their leases or purchase the freehold of the building in which they hold a lease.
We can assist, support and provide representation they need to successfully purchase the building.
From the initial planning stages to completing the registration at the Land Registry, we will advise clients on all aspects of the transaction.
Experienced Leasehold Enfranchisement Representation in Kennington and London
Purchasing the freehold of the building will allow the participating leaseholders to take over management of the building as well as grant extended leases to those participating in the purchase.
We can first review whether there is an entitlement to enfranchisement and consider with you the alternatives of lease extension and right to manage.
Whilst it may be possible to negotiate terms direct with the Freeholder, most transactions will proceed by utilising the procedures set out in the Leasehold Reform Housing and Urban Development Act 1993.
To be able to proceed with the purchase of the building, there will need to be a sufficient number of ‘qualifying tenants’ willing to proceed and a large level of cooperation between you and the other leaseholders.
The Stages Of The Process
You and your fellow leaseholders will need specialist valuation advice both at the initial stage and at the negotiation stage.
The leaseholders will be advised to enter into a participation agreement, recording their commitment to the process and what will happen if one or more leaseholders decide to withdraw from the process – serving a statutory notice will mean a liability for the freeholder’s valuation and legal costs as well as the costs incurred by you. It is critical that all required parties commit, as a withdrawal during the process could jeopardise the transaction.
The process will often break down into a number of separate stages.
- Initial Stage — Preparatory investigation of the freehold and leasehold titles; Expressions of interest by leaseholders; valuation; participation agreement; Decision as to whether to purchase as a Company or as Individuals; funding arrangements; company formation; preparation and service of Initial Notice.
- Stage 2 — Initial response of Freeholder; dealing with requests for information and title details; payment of deposit; review and to advise on the Freeholder’s Counter-notice.
- Stage 3 — Negotiations between the parties’ valuer to see whether a price can be agreed.
- Stage 4 — Application to the County Court to resolve any issues over entitlement to enfranchise; or to the Tribunal to determine any dispute over the price payable, the terms of the Transfer and the Freeholder’s claim for legal and valuation costs.
- Stage 5 — Completion of the Transfer and the registration at the Land Registry; Preparation and execution of Trust Deed; Preparation and grant/registration of long leases.
Our solicitors are experienced in these transactions and will advise leaseholders on every aspect of the freehold purchase process. We can attend residents meetings and will at each stage provide estimates of the costs to be incurred.
For more information, please contact our solicitors today for a consultation.
