Buy the freehold of your property - Statutory
Why might you want to own the freehold?
- As the length of your lease reduces selling or securing a mortgage on your property may become difficult. Owning the freehold gives you the ability to extend the term of your lease to 999 years and this will make it more valuable and if you want to move in the future easier to sell and for a higher price.
- Owning the freehold gives you greater control of the management of the building. This is particularly useful if you are having problems with the freeholder over how your block is run.
How would you go about it?
In simple terms, to be able to buy the freehold you first need to get together with other leaseholders in your block and at least 50% of the flat owners must agree to the purchase. If you can not do this but still need to extend the length of your lease you may be able to secure an individual lease extension, please click here for more information.
It is advisable for the participating leaseholders to sign a Participation Agreement which binds all the leaseholders to continue the process.
The participating leaseholders will then sign a formal document called an Initial Notice, this sets out basic details of the participants and the price they would like to pay. This commences the formal process.
The freeholder then has the right to respond by preparing a document called a Counter Notice. Negotiations can then take place as to the terms of the purchase of the freehold. If no agreement is reached ultimately a decision will be made by a tribunal (this is like a court). It is recommended that a solicitor is instructed as the process is complicated.
What will it cost?
The cost you pay to the Freeholder will depend on a number of factors including the market value of the flats and the number of years left on your lease.
There are also other charges that will be payable to the freeholder including their surveyor and solicitor fees.
If you instruct a solicitor to act you will also be responsible for their fees. We are experienced in these matters. To help you budget we have prepared a fee guide.
How can we help?
We have the necessary experience and expertise required to deal with what can be a complex process needing expertise in both property transactions and property disputes . We can offer you both of these, ensuring you the best possible result.
If you would like more information please contact us.
Please telephone and speak to Shelley Goldberg for free on 0800 037 1625 or fill in the online form to request a call back and someone will ring you within 24 hours.
You can access any of our conveyancing lawyers at any of our offices spread throughout Surrey, Hampshire and Greater London including Kingston upon Thames, Bordon, Cheam, Canary Wharf, Leatherhead, Raynes Park, Surbiton, Tolworth or Walton on Thames.