Can I buy the freehold?

There are two ways of buying the freehold -  formally under the Commonhold and Leasehold reform Act 2002 or informally where the leaseholders agree to the Trusts’ purchase price and cost relating to the purchase.

Formally
You are required under statute law to serve a formal Notice as set down by the Act, and normally this is drawn up through your legal representative or surveyor, having already ascertained a proposed cost from a surveyor.  All residents who are involved will have to have met the residency test as detailed in the attached letter.   By dealing with this matter through the Act there are set timescales which all parties have to adhere to and if no agreement can be made over the premium (cost) then both parties can approach the LVT for a determination.  

For more information on the formal process please click here

Informally
You would request the Trust to value the property.  The Trust would instruct an independent valuer to carry this out and the Trust would then make an offer based on this valuation.   Obviously with this route there is little room for negotiation.  Residents would not have to meet the residency test.  Timescales are not so rigid but the valuation would still have to be current (normally six months from the date of the valuation). 

Leaseholders would in both cases be responsible for the Trusts costs (£100 plus VAT, 50% of these costs remain payable if the valuation is carried out but the enfranchisement does not go ahead), legal fees from £500 plus VAT (depending on the complexity of the transaction) and the valuation fee approximately £250 plus VAT per flat. This fee may be reduced because of the number of properties in the block.
 

For independent information about purchasing the freehold please click on the following link: www.lease-advice.org.uk