Flat Living WEBSITEGUIDE JPC Law is an award winning law firm offering a complete legal service.
It has a market leading reputation in the areas of leasehold enfranchisement, commercial property, residential property, landlord and tenant issues and dispute resolution.
Contact us for expert assistance and excellent client service
Tel: +44 (0) 20 7625 4424 Fax: +44 (0) 20 7328 5840 Email:
enquiries@jpclaw.co.uk hard work, professionalism and expertise
Buying your freehold Yashmin Mistry ofJPCLawexplainstheright tocollectivelypurchasethe freehold of your block
The LeasehoLd ReformHousing andUrban DevelopmentAct 1993 (asamended by theCommonhold andLeaseholdReformAct 2002)gives leaseholders of flats theright,under certain circumstances,tocompelthe sale of thefreeholdofthe building or part of
theirbuilding.Thisright is oftenknownas “collective enfranchisement”.
WHYSHOULDYOU
ENFRANCHISE? If leaseholders are unhappy about the way their block is being run, generallyspeaking(although not always), it is ownership of the freeholdwhich gives them controlovermanagementof the building. Examples include, repairs, servicecharges, appointmentofmanagingagents and the insurance. In addition:
nthe participating leaseholders cangrant themselves very long leases without payment of afurther premiumandmay eliminateorreducethe ground rent payable for the remainder of
the term of the lease; nit is possible to usethe process as an opportunitytorectify defects in the standard lease for
the flats; and nthereisperceived to be an enhanced saleability of flats.
QUALIFICATION? Prior to serving notice there should be aperiodofpreparation to ensure participating leaseholders arefully advised andequipped on theprocess. Thismust include checkingthe qualifyingcriteria. Toexercise the right youmust be
Flat Living Issue 15
a “qualifying tenant”.Thismeans that your leasewas originally grantedfor atermofmorethan21 years; it doesnotmatter if the lease nowhas less than21 yearsleftto run(‘a longlease’). In general, your building will
qualify if: nit is aself-contained building
(or part of a building); nit has two or more flats;
lesseesmusttakelegal advice to ensure they and the building qualify;theymustalsotake valuation advice fromsomeone with expertiseincollective enfranchisement. This will enable themto have expert guidance on theprice they are likelytopay. Theprocessisformally
startedwhen the lessees give
venturemust be equal to half the number of flats in thebuilding
nat least two thirds of all the
flats are held on long leases; and nnotmorethan25% of the internal floor area of thebuilding (excluding common parts) is used for non-residential purposes. Assessingwhether or notthe qualificationcriteriafor exercis- ing the right has beenmet is complicated and specialist advice should always be taken.
HOWMANYFLATS
ARENEEDED The number of qualifying ten- ants participating in the venture must be equaltohalf thenumber of flats in
thebuilding.For example,inablock of 18 flats,12 flatsmust be held by qualifying tenantsand at leastninemust participateinthe enfranchise- ment process.
THE PROCEDURE Before starting the process the
notice to the landlord of the wish to exercise theirright – the “Initial Notice”. Thismust contain certain information aboutthe lesseesand theirtitles
Thenumber ofqualifying tenantsparticipatingin the
to demonstrate they qualify. It specifies theprice they are offering. TheNoticemustbeservedbya
“Nominee Purchaser” on behalf of theparticipating leaseholders. The Nominee Purchaser is usuallyacompany formed by the participating leaseholders to acquirethe freehold. The landlord is then invited to
give itsCounter-Noticeinreply by thedateset outinthe Initial Notice. The landlordmust state whether or not it accepts the terms set out in the Initial Notice or suggest different ones.Ifthe landlord objects to the claim, it must statereasons,ifapplicable, fornot agreeing that thereis right to enfranchise.●
Toreadthis article in full goto:www.flat-living.
co.uk/advice/892-the- collective-purchase-of- the-freehold-of- blocks-of-flats
WhaTElSEISThErEonlInE formE? Othertopicscovered by
this area of thewebsite include: nTop tips for buying your freehold
http://www.flat-living.co.uk/advice/584-top-tips-for-buying-your- freehold
nYour right to buy your freehold
http://www.flat-living.co.uk/advice/594-your-right-to-buy-your- freehold
ndoes our block qualify?
http://www.flat-living.co.uk/advice/166-does-our-block-qualify
nhowmuch will it cost?
http://www.flat-living.co.uk/advice/165-how-much-will- purchasing-our-freehold-cost
nTake professional advice
http://www.flat-living.co.uk/advice/583-serving-notice-to-buy- your-freehold-take-professional-advice
35
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68