What You Need To Know About Buying The Freehold On Your Leasehold Property
Our main aim here at Leasegevity is to make it easy for leaseholders to extend the lease on their property.
But there is another option.
Rather than extending your lease…
It’s possible to buy the freehold outright.
By doing so you can avoid the costs of extending the lease and any additional service charges you might be liable to pay as the tenant.
As with any legal process, there’s a fair bit of paperwork and process involved…
And frankly, it can become a bit of a minefield if you attempt it alone.
Thankfully, you don’t need to.
We can help.
In fact, we can take care of the whole process for you and deal with the current freeholder and all the solicitors and surveyors that will inevitably get involved.
But to give you an idea of what’s involved, let’s run through some of the basic details…
House Or Flat?
When it comes to buying a freehold, the first thing to consider is whether it’s on a house or flat.
If it’s a flat, it’s important to realise you can’t buy the freehold on your own.
Instead, you’ll need to do so with the other flat owners in your block. This is known as a ‘collective enfranchisement’.
If it’s a house, this is a little more straight-forward.
However, there are still a number of differences between owning a leasehold property and owning a freehold property, which you need to know about before progressing.
It’s why in either case, the first thing we’ll do is offer you free advice on what action we recommend you take. We’ll talk you through the whole process and make sure it’s clear.
We’ll figure out at this initial stage exactly what your rights are and whether you’re able to actually buy the freehold.
If you’re not 100% about your current situation or don’t have the original documents, don’t worry. We can get a copy from the Land Registry.
At this stage too, we’ll draw up an agreement allowing us to act on your behalf. This is important as it means we can contact the freeholder and any other people we might need to speak to without having to bother you each time.
It helps save a lot of time and stress.
Calculating The Cost And Serving Notices
Once we’ve established it’s possible to buy the freehold, whether by yourself or as part of a collective enfranchisement, we’ll work out the cost to do so.
This is known as the premium.
As with everything in the process, sadly it can be complicated. There are many variables to consider.
But we’ll work out a valuation range you can use to assess if it’s within your budget or not.
Should you be happy with the potential cost and you wish to go ahead with the process, we’ll get in touch with the freeholder and issue the relevant notices of your intention to buy.
The freeholder has two months to acknowledge the offer and respond with the relevant counter notice.
As we’re experts in this area, we aim for all of our initial offers to be appropriate and accepted. But if there is a problem or some negotiation is required, we’ll do all of that on your behalf.
In fact, throughout this element of the transaction, we’ll do all the necessary paperwork. There are various different stages to go through, but we’ll take care of all of that, so you don’t need to worry about it.
Once the process is complete, we’ll let you know accordingly, the freehold will be transferred to you and you’ll be able to enjoy the benefits of owning a freehold property.
As you can see, there is no doubt buying a freehold is a complicated process, but with us doing all the work for you, you won’t need to worry about any of that.
So, if you’re interested in buying a freehold you want to find out more about how we could help you…
Just give us a call on 0300 400 3279 or reach us through our form below: