This is the process of negotiating a settlement for the premium to be paid in order to buy a freehold (in the case of a house), or extend a lease (in the case of a flat).
Leaseholders within a block of flats have the right to join together and compel the sale of the freehold of their building, or part of the building, by a process called “collective enfranchisement”. This is governed by the Commonhold & Leasehold Reform Act 2002 which lays out strict qualifying criteria for leaseholders. Typically a company will be established as the Nominee Purchaser, on behalf of the participating leaseholders, to ultimately purchase the freehold.
Specialist valuation advice will be required at an early stage to establish the likely costs involved, and the premium to be paid to the freeholder to acquire the freehold interest. Through our sister company MJ Boaden Chartered Surveyors we can assist interested parties through the whole process, including full liaison with the appointed legal representatives.
For information on individual homes and flats, please refer to our Leasehold Timebomb page on this site.