Residential freehold enfranchisement

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Residential freehold enfranchisement

Why or when would someone require this service?

To assist residential flat owners and landlords in the purchase or sale of the freehold.

The main reason for leaseholders wanting to purchase the freehold is to be in control of the building (and common parts) which they live in and in the knowledge that the value of the property is likely to increase as a result of their purchase. In addition, leaseholders commonly obtain a reduction in the associated expenses of maintaining the property by reducing the amount of the service charges payable for the upkeep of the property.

Once the freehold is purchased leaseholders may decide to grant themselves an extended lease and/or vary their lease terms.

How long does it take?

If agreement is reached between the parties, the process can be completed within a matter of weeks from the date of agreement.

If the formal statutory route is required, which involves the leaseholders serving an Initial Notice followed by the landlord serving a counter-notice, the process can take around 12 months to compete.

Is it expensive?

We will charge a set fee for our service. The set fee is on the basis that the freehold purchase remains uncontested. If it does become contested then our litigation department will provide you with an estimate of costs for proceeding to the First-Tier Tribunal or County Court.

Our set fee will be dependent on whether we are acting for you as a landlord or leaseholder, the number of flats involved and the value of the freehold. Please contact us for a free quotation by telephone or by email conveyancing@grantsaw.co.uk.

The leaseholder will be responsible for paying the surveyor’s fee for valuing the freehold and for paying the landlord’s legal fees for transferring the freehold. The leaseholder will not however be required to pay the landlord’s fees for any proceedings with the First-Tier Tribuna, should this be required.

Things to consider before calling

Leaseholders should consider how they would wish to purchase the freehold. Would this be via a company specifically incorporated to complete the purchase or would the freehold be held in the individual names of the leaseholders?

Why are Grant Saw the best people for the job?

The Grant Saw Residential Property team are able to offer specialist legal advice to landlords and leaseholders. This area of law is particularly complex and there are many traps for the unwary.

We have successfully acted for numerous landlords and leaseholders. Please call us now for a free telephone consultation.

How does the process work/what are the steps?

There are two different routes that can be taken to purchase the freehold. Either agreement can be reached amicably between the landlord and tenants on all matters, including the price to be paid. The freehold will then be sold by mutual agreement.

Alternatively, the leaseholder can commence the statutory procedure which entitles them to purchase the freehold and requires the landlord to sell the freehold subject to the leaseholders meeting certain eligibility requirements.

In order to be eligible, the leaseholders must satisfy the following criteria:-

  • There must be at least two flats in the block.
  • Two thirds of the flats must be let to persons who are “qualifying tenants” (for example where a lease is granted for a term in excess of 21 years).
  • No more than 25% of the block is used for non-residential use.

There are certain exceptions if the landlord converted the building into flats.

Prior to tenants serving formal notice on the landlord, it will usually be necessary to instruct a surveyor to value the freehold. The notice served on the landlord will have to specify a sum which the participating leaseholders are prepared to pay for the purchase of the freehold.

Once the required notice is served on the landlord he will have a set period of time (at least two months) within which to serve a counter-notice. Within the counter-notice the landlord is required to state whether the sale of the freehold is agreed or not and if it is agreed, whether the landlord accepts the price proposed for the purchase by the leaseholders.

If the landlord is not in complete agreement with the tenants’ proposals, the solicitors and valuers instructed by both the landlord and leaseholders will usually attempt to negotiate those terms for which agreement has not yet been reached. If the parties are not successful in this regard, then any outstanding issues which are yet to be resolved will need to be determined by the First-Tier Tribunal (Property Chamber).

The above is a short summary of what is in fact a complex and detailed area of law. It is important to obtain specialist advice and assistance from legal advisers such as ourselves. Unfortunately all too frequently we are instructed by parties who have undertaken part of the process themselves or have previously instructed other solicitors who are not familiar with this area of law.

For a more comprehensive summary of the steps involved please see the commentary set out in the Leasehold Advisory website.

Residential freehold enfranchisement

Lease extension

Meet the Residential Property team
Ray Crudgington
Managing Partner
Managing Partner
greenwich
02083054224
ray.crudgington@grantsaw.co.uk
Maria Lati
Maria Lati
Partner
Partner and Head of Residential Property
blackheath
02083054229
maria.lati@grantsaw.co.uk
Mike Clary
Family
Partner and Head of Family
greenwich
02083054237
mike.clary@grantsaw.co.uk
Kalpa Prajapati
Partner
Partner and Head of Private Client
blackheath
02083053536
kalpa.prajapati@grantsaw.co.uk
Mario Savvides
Commercial Property
Partner and Head of Commercial Property
greenwich
02083053531
mario.savvides@grantsaw.co.uk
Sarah-Kate Jackson
Litigation
Partner and Head of Litigation
greenwich
02083054236
sarah-kate.jackson@grantsaw.co.uk
Adina-Leigh Collins
Litigation
Solicitor
greenwich
02083053556
adina-leigh.collins@grantsaw.co.uk
Aimal Gram
Commercial Property
Solicitor
greenwich
02083053524
aimal.gram@grantsaw.co.uk
Aisha Mohammed
Aisha Mohammed
Residential Property
Professional Support Lawyer
greenwich
02083054228
aisha.mohammed@grantsaw.co.uk
An Le Tran
Commercial Property
Professional Support Solicitor
greenwich
02083054226
anle.tran@grantsaw.co.uk
Ana-Maria Badeanu
Ana-Maria Badeanu
Corporate and Commercial
Solicitor
greenwich
02083053539
ana-maria.badeanu@grantsaw.co.uk
Angela Shaw
Angela Shaw
Private Client
Solicitor
blackheath
02083054234
angela.shaw@grantsaw.co.uk
Angus Young
Litigation
Solicitor
greenwich
02083054225
angus.young@grantsaw.co.uk
Atifha Aftab
Atifha Aftab
Family
Solicitor
greenwich
02083054238
atifha.aftab@grantsaw.co.uk
Bimal Kotecha
Litigation
Solicitor
greenwich
02083053523
bimal.kotecha@grantsaw.co.uk
Charlotte Warren
Charlotte Warren
Private Client
Solicitor
blackheath
02083054231
charlotte.warren@grantsaw.co.uk
Claire Mac Mahon
Litigation
Solicitor
greenwich
02083053537
claire.macmahon@grantsaw.co.uk
Deborah Taite
Residential Property
Solicitor
blackheath
02083053542
deborah.taite@grantsaw.co.uk
Emily Pearce
Residential Property
Solicitor
greenwich
02083053526
emily.pearce@grantsaw.co.uk
Georgia Beales
Litigation
Paralegal
greenwich
02083054206
georgia.beales@grantsaw.co.uk
Jeremy Brooks
Jeremy Brooks
Private Client
Solicitor
blackheath
02083053534
jeremy.brooks@grantsaw.co.uk
Joanna Godden
Notary Public
Notary
greenwich
02083083627
joanna.godden@grantsaw.co.uk
Lauren Smith
Employment
Paralegal
greenwich
02083053543
lauren.smith@grantsaw.co.uk
Mandeep Clair
Family
Solicitor
greenwich
02083054235
mandeep.clair@grantsaw.co.uk
Michael Pope
Corporate and Commercial
Solicitor
greenwich
02083053540
michael.pope@grantsaw.co.uk
Michelle Pinnington
Michelle Pinnington
Residential Property
Solicitor
blackheath
02083054216
michelle.pinnington@grantsaw.co.uk
Noella Gooden
Noella Gooden
Employment
Solicitor (Australian qualified)
greenwich
02083053543
noella.gooden@grantsaw.co.uk
Raj Waghela
Raj Waghela
Residential Property
Solicitor
greenwich
02083053529
raj.waghela@grantsaw.co.uk
Randeep Thethy
Randeep Thethy
Residential Property
Solicitor
greenwich
02083054209
randeep.thethy@grantsaw.co.uk
Sarah Hogan
Sarah Hogan
Residential Property
Solicitor
blackheath
02083054214
sarah.hogan@grantsaw.co.uk
Simona Morina
Simona Morina
Litigation
Solicitor
greenwich
02083053521
simona.morina@grantsaw.co.uk
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Simone Gavioli
Litigation
Solicitor
greenwich
02083053548
simone.gavioli@grantsaw.co.uk
Susan Collins
Commercial Property
Solicitor
greenwich
02083054200
susan.collins@grantsaw.co.uk
Tatiana Zenina
Tatiana Zenina
Private Client
Solicitor
blackheath
02083054239
tatiana.zenina@grantsaw.co.uk
Trisha Djemal
Trisha Djemal
Residential Property
Consultant Solicitor
blackheath
02083053546
trisha.djemal@grantsaw.co.uk
Tyrone Grant
Residential Property
Head of Leasehold Enfranchisement
blackheath
02083053522
tyrone.grant@grantsaw.co.uk
Denise
Accounts Staff
greenwich
02088586971
enquiries@grantsaw.co.uk
Helen Arney
Helen Arney
Support Staff
HR Manager
greenwich
02083054233
helen.arney@grantsaw.co.uk
Jamie
Support Staff
Head of IT
greenwich
02088586971
enquiries@grantsaw.co.uk
Jayne Lye
Support Staff
Office Manager
greenwich
02083054204
jayne.lye@grantsaw.co.uk
Kasia
Accounts Staff
greenwich
02088586971
enquiries@grantsaw.co.uk
Michael Tobin
Michael Tobin
Support Staff
Marketing and Business Development Manager
greenwich
02083053550
michael.tobin@grantsaw.co.uk
Laura Danquah
Solicitor and Compliance Manager
greenwich
02083054222
laura.danquah@grantsaw.co.uk
Sue Holness
Support Staff
Customer Services
greenwich
02083054221
sue.holness@grantsaw.co.uk