Page 5 - freehold_enfranchisement

A step by step guide to buying the Freehold of your block 4

That being said, if your freeholder lives in the block it would be better to have an informal chat
first. Unfortunately, some freeholders still need educating that it is the leaseholders’ right to buy
him or her out.
Exercising the right requires a formal legal notice to be served on the freeholder and all
intermediate landlords. In claiming your statutory right, the compensation to which a freeholder
is entitled will include any appurtenant property, possible retained land with development rights
(such as a roof space), loss of investment income, and any loss of commission from insurance
premiums.

Serving notice automatically triggers statutory timescales for response. Errors in a notice may
result in the freehold purchase being completed at the price stated by the party whose notice is
not legally flawed.

Understanding what premium you should quote on your notice requires specialist valuation
advice. In law, the leaseholders claiming their rights are responsible for both parties’ costs and
if the residents have served notice then the landlord's surveyor’s fees form part of the purchase
price together with reasonable legal fees.

Understanding what you should offer will require you to take specialist valuation advice. There
are more factors to be taken into account in a collective enfranchisement valuation for say a
block of 30 flats than perhaps 30 typical mortgage valuations. Primarily this is because the
valuation method is set in legal statute and second, because there is an element of assessing
compensation due to the landlord and any intermediate interests, for dispossessing them of
valuable title.

Step 3 - Negotiations and the First Tier Tribunal

Fees are well spent if a valuer with appropriate expertise has been selected. There are many
unqualified surveyors dabbling in this type of work and you should always be aware of the
experience, qualifications and competency offered by the firm you select.

Advice on negotiations

While our valuations do include evidence, a valuation commentary and advice on what to serve
in your initial notice/counter notice, should you not be able to close the deal we can negotiate
valuation differences on your behalf.

Negotiations are carried out by a Ringley director or FRICS qualified surveyor and are chargeable
at an hourly rate. We will normally give you a time/cost initial budget based on the complexities
of the case in question. We will account our time to you if negotiations are not concluded within
this initial budget.

www.leaseholdguidance.co.uk Solicitors | Surveyors | Accountants | Property Managers

Tel: 0207 428 1977 Presented by the Ringley Group