Purchasing a Freehold - Any Experience?

[jcelee]

I am currently in the early stages of the process of buying the freehold on a flat I own (along with the other leasees).

I would be very gratful if you could share your experiences if you've bought a freehold, particularly around obtaining a valuation/ use of surveyors, getting legal representation, serving an enfranchisement notice etc etc.

Many thanks!

[p4cks]

Freehold flats are notoriously difficult to get mortgages on, are they not? Which could make selling it on very difficult.

[jcelee]

Not something that I was aware of.
The flats will still be managed, only we will choose the managing agents, not the current freeholder.

We will own shares in the freehold and write ourselves new leases - so technically it will still be leasehold.

Edited by jcelee on Tuesday 24th March 14:51

[loafer123]

http://www.lease-advice.org/

[Quaint]

We and our upstairs neighbour are currently engaged in the same thing. The first thing I'd suggest is that you find a solicitor who specialises in "leasehold enfranchisement" - the current law is relatively recent and its provisions are detailed so you don't want a non-expert looking at it. I can't stress this enough - this isn't run-of-the-mill conveyancing and

You also need a specialist surveyor who can provide you with a freehold valuation and then negotiate with the freeholder's surveyor on your behalf, ours cost about £600 + VAT for all this. As it happened, we found the surveyor first and he advised on a good specialist from a local firm of solicitors.

The process, briefly, goes like this:
1) Leaseholders serve a notice of intent to purchase on the freeholder via their solicitor. This includes the surveyor's valuation.
2) Freeholder has a finite period of time to make a counter-offer.
3) Both sides' surveyors negotiate to reach a mutually acceptable settlement.
4) You pay the freeholder and take possession of your respective shares of the freehold.

If you and the freeholder can't reach an agreed price, you can (after a certain amount of negotiation time has been allowed) take the freeholder to a Leasehold Valuation Tribunal, whch will (as the name suggests) decide on a fair value. This value can then be used as the basis for you to sue the freeholder for the freehold if he absolutely will not play ball. Obviously, as with anything involving lawyers, your costs will increase the whole time the meter is running. You should also be prepared to meet the freeholder's "reasonable costs" as part of the settlement.

Have a look here: http://www.rpts.gov.uk/index.htm

Disclaimer: I am not a lawyer, and the above represents nothing but the imperfect understanding of a highly imperfect mind. Terms and conditions apply. Ample free parking.

[ewenm]

p4cks said:

Freehold flats are notoriously difficult to get mortgages on, are they not? Which could make selling it on very difficult.

Not my experience.

I lived in a flat which was one of 4 in the building. There was a management company of which each flat owner was a director and the management company owned the freehold. Upon change of flat ownership, the existing director resigned and the new owner was accepted as a new director. Seemed fairly simple at the time.

[jcelee]

Thanks guys. Quiant did you use local surveyors and solicitors? I take your point on using a specialist, you have to wait 12 months to try again and pay the freeholders costs if you mess up an application.

[Quaint]

jcelee said:

Thanks guys. Quiant did you use local surveyors and solicitors? I take your point on using a specialist, you have to wait 12 months to try again and pay the freeholders costs if you mess up an application.

We did. We found the surveyor first and he recommended the solicitors. So far all has been good, though in our case the landlord is being intransigent.