Acquiring The Freehold To Your Flat

WHAT IS IT?

This gives the right for two or more leaseholders to buy their freehold as described in the Housing and Urban Development Act 1993

In order to be a qualifying leaseholder you must have a long lease which means a lease which, when originally granted, was for a term of more than 21 years.

HOW DO I PREPARE FOR A CLAIM?

Any qualifying leaseholder can give a notice to his landlord or the managing agent requiring details of the various legal interests in the block.

When you have established that the building qualifies and that there is a sufficient number of qualifying leaseholders who wish to participate, you will need to establish what it is going to cost by obtaining a valuation.

HOW IS THE CLAIM MADE?

The next procedural step is the service by the participating leaseholders on the landlord of what the Act refers to as the Initial notice – the notice which claims the right to collective enfranchisement.

The landlord is likely to respond with a procedural notice requiring the participating tenants to deduce title. The landlord’s valuer is also likely to inspect the building for the purpose of carrying out a valuation.

DISPUTES

This application must be made within six months following the date of the counter-notice or the claim is lost.

COMPLETION

Once the terms of acquisition have been agreed or determined by the leasehold valuation tribunal, then the matter reverts to a conveyancing transaction with the parties entering into a sale contract on the terms agreed or determined and then to completion.

If the matter proceeds to completion, then the participating leaseholders, through their nominee purchaser, will become the freeholder of the building, subject to the various flat leases. In effect, the participating leaseholders will replace the existing landlord/freehold. This will put them in a position to grant themselves extended leases.