Enfranchisement (Buying My Freehold)
‘I need advice on buying my freehold’ A Did you know that leaseholders have a right under law to acquire the freehold of their building? There are certain requirements that must be met, i.e. at least half of qualifying leaseholders are taking part, etc. What are the pros and cons?
- You have absolute control over aspects of insurance & the management.
- You can still collect ground rent from those leaseholders who did not take part initially.
- As the time on the leases draws down, you can extend your lease with no further premium due.
- As the landlord, you would have to comply 100% with the covenants in the lease imposed on the landlord, failure to comply could result in leaseholders taking costly legal action
- It is not a route to save money on the service charge as all the same rules and regulations would apply to the freeholder regardless of who that is
- Directors of any new freehold company are responsible for their decisions, so an element of understanding of leasehold matters & law is required before taking this important step.
In any case it is always strongly advised to appoint a managing agents to undertake the management on your behalf & if you are considering this, please Contact Us and we can help you buy the freehold using our network of solicitors and surveyors and undertake the management for you once we have completed the matter.
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