Freehold
You own the building, the land on which it stands and the sky above it and are responsible for its maintenance. Houses are generally freehold.
Leasehold
You own the property for a period of time as specified in a lease agreement with the freeholder (person / company who owns the freehold). The freeholder who may also be the Landlord is responsible for the maintenance of the communal areas and you pay a service charge / ground rent. Flats and maisonettes are usually leasehold.
How our Collective Freehold Purchase solicitors can help
Where leaseholders in a building collectively buy the freehold, they take direct control of how their building is run. This is known as a collective enfranchisement under the Leasehold Reform, Housing and Urban Development Act 1993.
For many leaseholders it can be more cost-effective to buy the freehold collectively than to extend individual leases one by one. Owning the freehold can give far greater control over building management, costs, maintenance and future lease extensions.
We deal with:
- confirming whether the building and leaseholders qualify under the 1993 Act
- liaising with a specialist enfranchisement valuer who can advise on premium and apportionments
- advising on the corporate structure to hold the freehold (if required)
- preparing and serving the Initial Notice (Section 13 Notice)
- dealing with the legal documentation for the acquisition
- lender consent and substituted security (where relevant)
- completion and application to HM Land Registry
Fees
Each building is different in terms of size, number of flats and complexity, and the premium and structure varies.
We therefore provide a bespoke fixed fee quote once we have seen the title information and details of the building. Our quotes are transparent, competitive and given at the outset so you have certainty. There are no hidden extras.
Why clients instruct us
- we regularly act on collective enfranchisement matters and understand the process in detail
- we provide clear advice in plain English
- we proactively manage the legal steps for all participating leaseholders
- we keep you updated throughout, so you are not left chasing for information
- our focus is not just the purchase itself, but ensuring the building is correctly structured going forward so that future lease extensions and management are straightforward
Next steps
If you email us the property address, details of the building and the number of participating leaseholders, we can confirm eligibility in principle and outline the next steps. We usually respond on the same day.
How may we help you?
Collective freehold purchase, or collective enfranchisement, is the right for the owners of flats in a building to join together to buy the freehold of that building. The Act governing the right to do so is the Leasehold Reform Housing and Urban Development Act 1993 (as amended).
It is a requirement that at least 50% of the flats in the building, who are qualifying tenants, must participate. A qualifying tenant is a leaseholder / tenant who has a lease that was more than 21 years in length when first granted.
It is important for the leaseholders to decide how they will obtain the freehold. Usually a company will be formed by the leaseholders for the purpose of purchasing the freehold. The procedure requires that an initial Notice is served on the Landlord informing the Landlord of the intention to purchase the freehold. Once the initial Notice has been served there will be certain deadlines and requirements for information to be provided. For this reason, the procedure can be quite complex.
To qualify for collective enfranchisement, the building must contain two or more flats and at least two thirds of the flats must be owned by ‘qualifying tenants’. As mentioned above, at least 50% of the flats in the building who are qualifying tenants must participate. There are certain leases which may or may not come within the definition of a qualifying tenant.
It is important to note that if more than 25% of the floor space of the building, excluding any common parts, is not used for residential purposes then the building will not qualify.
Our solicitors will be happy to provide further information to help you understand whether you will qualify. We will explain what is involved at each step of the process and provide guidance based on your own individual circumstances.
.
The length of time collective enfranchisement takes differs from case to case. It will depend on factors such as the level of cooperation from the various parties involved. For example, if both parties negotiate the premium quickly, then the matter should be resolved within a fairly short period.
We do not like to raise false expectations by promising a precise time frame at the outset, as it is impossible to predict any issues that may arise. That said, we aim to deal with your matter as efficiently as possible and we will always bear in mind any particular time frame to which you might wish to work.
We pride ourselves on our honesty and will always let you know if we think your goals may not be achievable.
