Owning the freehold of a property has many advantages and with the leasehold reform, you may have the right to purchase the freehold of your leasehold property at a fair price. If you want to purchase the freehold of a property, our expert solicitors are here to assist you.
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If you own a leasehold property in England or Wales, you may be entitled to purchase the freehold. It could be that the landlord has decided to sell, or you could begin the process yourself by making an offer.
Owning the freehold of a property is associated with a range of benefits besides the full security of never facing eviction by the landlord:
- No more ground rent payments to the landlord
- A potential increase in the property's value
- Making a property easier to sell
- Increased control over management and maintenance
- Fewer restrictive conditions
Leasehold reform explained
In 1993, a new right for leaseholders was brought in under the Leasehold Reform, Housing and . This piece of legislation stated that qualifying tenants of flats and apartments had the right to purchase the freehold on their properties at a fair market price. This right is called "collective enfranchisement" and it's what has made it easier in recent years for leaseholders to take control and purchase the freehold on their homes.
If you exercise your right to purchase the freehold on a flat, it's important to note that you'll then share the freehold on the whole of the building with its other tenants. This means you'll be working closely with your neighbours and the other owners of the freehold. There may still be disagreements and you may need to work hard to reach a consensus on important matters.
Why should I consider legal assistance when purchasing a freehold?
Whether you want to purchase the freehold for a house, or for a flat where you would be sharing it with other tenants, we strongly advise you to work with an expert solicitor. We can help you with the following:
- Establish if you are eligible to purchase the freehold
- Set up participation agreements for shared freeholds
- Assist you valuing the freehold
- Approach the freeholder and assist you with the negotiations
For further information or assistance, please contact us.
Costs of legal advice
At Slater and Gordon, we want to avoid hidden fees and unexpected costs. That's why we will provide you with a fixed quote before starting our services. That way, you know exactly what you'll be paying and what services you'll receive for your money.
What if the other tenants are not interested in buying the freehold?
To purchase the freehold, you'll need at least 50% of the building's qualifying tenants to agree. The more flat owners that take part, the more affordable it may be in terms of legal fees. If you are in the minority you can't buy the freehold. You can try to with benefits mentioned above.
We will be able to assist with legally binding agreements that can help to prevent logistical problems with large blocks of flats.
Slater and Gordon were very professional and calm throughout the process, especially in the final week leading to exchange and completion, coming up with sensible solutions to prevent my buyer's solicitor from delaying the process any further. I cannot recommend them enough. Mr B (residential conveyancing case)
I am very pleased with the service I have received. I had a complicated chain between different towns both buying and selling. Excellent communication skills and keen to go extra mile to provide you with the best of her ability. The completion happened within timescale promised. Anonymous (residential conveyancing case)
We've just moved into our new home. The Manchester branch couldn't have been more helpful, patient or kind. Really quick to get back to us and thoroughly explained everything to make sure we could understand it. I would highly recommend. Mrs D, Manchester (residential conveyancing case)