Warning: Trying to access array offset on value of type bool in /data0/chelmsfordsurveyors.com/public_html/wimbledonsurveyorscom/wp-content/plugins/elementor/includes/base/widget-base.php on line 223
Warning: Undefined array key -1 in /data0/chelmsfordsurveyors.com/public_html/wimbledonsurveyorscom/wp-content/plugins/elementor/includes/base/controls-stack.php on line 695
Expert Collective Enfranchisement Services in London
Getting collective enfranchisement on your Wimbledon London or Sussex building means you and your neighbours will be managing your building as a Joint freehold-owning corporation, giving you considerable control over the operations which, can not be controlled by an un-elected “Professional” Leasehold Managing Agent.
Freehold Valuers in Wimbledon London and Home Counties region
The Leasehold Reform, Housing and Urban Development Act 1993 (as amended) entitles Leaseholders the right to join together to buy the freehold of a block of flats from the Freeholder provided certain qualifying criteria are met.
Collective Enfranchisement is becoming vastly more popular with Leasehold owners highlighting the benefits of owning a share of the freehold. It is imperative that both legal support and ideally professional advice is sought if deciding to acquire the freehold.
Looking to enfranchise your Wimbledon London block of flats?
They can assist by providing advice on the enfranchisement process so that you and your fellow leaseholders can potentially purchase the property freehold. Enfranchisement is an extensive process which allows the leaseholder to purchase the freehold or an extended lease.
Enfranchisement in Wimbledon London is a very complex process and therefore should always be done with the help of professionals who have experience in these matters. What do you gain from owning the freehold? There are some good reasons for leasehold owners of blocks of flats to want to join together to buy the freehold of their block of flats.
What are the benefits of buying the freehold?
The alternative to getting a lease extension is collective enfranchisement. This is when a group of residents in a block of flats have purchased the freehold. Lease extensions for the individual flats can then be agreed at no extra cost to the participants and the ground rent can be waived, enhancing the property’s value and the ease with which it can be sold. The benefits therefore include:
● Longer lease: as an alternative to lease extension, a group of residents can purchase the freehold and so lease extensions for individual properties can be agreed at no additional cost and ground rent can be waived, which will increase the property value and make for easier sale
● Control of management: freehold ownership means owning the land and building with others, which gives more control to the running of the property, as you can self-manage or choose your own managing agent and contractors for communal maintenance
● Saving on cost: owning a share of freehold should result in lower cost for maintenance and repairs per owner as better value can be achieved on insurance, projects, management and maintenance
Eligibility requirements for freehold enfranchisement
All businesses need to have some form of management control in place, either formal or informal, to keep the company running properly and to achieve its objectives. Owning the freehold also means that you will own the land and building in legal terms along with the other participants. This gives you more freedom and control in the day-to-day running of the building. You are entitled to pick your own management company and contractors such as for communal maintenance, cleaning or gardening. Eligibility therefore requires:
● minimum 2-3 flats owned by qualifying tenants
(possessing a lease of 21 years or more)
● self-contained flats
● not owning more than 3+ properties as a leaseholder
● minimum 75% of the building used for residential purposes
● minimum 50% agreement of participants
● not living in the properties as freeholder
Steps to Buying Freehold
The first step in the process is for the leaseholders to form a company (the nominee purchaser) of which they are all members and then to nominate a purchaser. In the initial Notice the leaseholders are setting out certain information about the flat owners and the building, their choice of independent surveyor and the price they are offering for the freehold. The Notice is served on the freeholder who then has 2 months to respond. The freeholder then serves a counter-notice, stating whether or not they accept the leaseholder’s request to buy the freehold, and if so, on what terms. If they fail (or are late) to serve a counter-notice the leaseholders’ right to buy the freehold on the terms in the initial notice is automatic. If a price can’t be agreed through negotiations between the nominee purchaser and the freeholder, the leaseholders can apply to the Leasehold Valuation Tribunal within 6 months of receiving the counter-notice. You should therefore take the following steps:
- Check eligibility criteria for buying the freehold
- Set up a company for the qualifying leaseholders
- Choose a nominee purchaser
- Instruct a solicitor and surveyor
- Seek expert advice and a freehold valuation for the purchase
- Serve the Initial Notice on the freeholder
How much does a share of freehold cost?
The calculation of the price payable for the freehold depends largely on a number of factors such as the value of each flat in the building and the number of years left on each lease. The Leasehold Reform, Housing & Urban Development Act 1993 has a formula that can be used by freehold valuation surveyors to provide an indicative premium to the leaseholders taking part in the enfranchisement process. It is important to gain a full knowledge of what the freehold on a building entails. There may be a basement or underground car parking included as part of the building and this may complicate the purchase. Also, it should be noted that any purchase price shall be higher if any of the individual leases have a term which is less than 80 years.
