Freehold explained

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 Urban Development Act. 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 convince the tenants 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.