Page 7 - freehold_enfranchisement

A step by step guide to buying the Freehold of your block 6

Step 4 – Completing the legal work

This is a specialist area of law that many high street solicitors do not practice. If the timescales
required for the various stages are not adhered to or the specified matters are not disclosed on
a notice, then the notice can be invalid to the detriment of one or other party.

Setting up the Freehold Company
There is a need to set up a Freehold Company through which the freehold, once transferred, is
owned. This company should reasonably represent the objectives of a company that only
manages and owns a freehold title. We therefore do not recommend that you buy a company
"off the shelf".

See the Buy a Company section for more information.

The articles of association are simplified for future meeting requirements and the objectives
of the company tailored to running estates.

The legal work necessary to complete a lease extension includes:

• Obtaining a copy of the lease(s);
• Obtaining a copy of the Land Registry Title Numbers for leasehold and freehold titles;
• Checking leaseholders' eligibility to qualify/participate in the freehold enfranchisement
application;
• Serving information notices to trace the freeholder/competent landlord;
• Forming a company through which to buy the freehold title;
• Serving notices to enfranchise:
o On the freeholder/competent landlord(s), there may be an intermediate landlord
o Via a Vesting Order where the landlord cannot be found
o Via the Trustee in Bankruptcy where landlord is an individual who is bankrupt
o Via the Receiver where the landlord is a company in receivership
• Dealing with the landlord's requests for a deposit to be paid. By law this can be 10% of
the premium or £250 whichever is the greater;
• Conveyancing to vest the title in the Freehold Company;
• Issuing share certificates to participating lessees;
• Executing a Deed of Variation to vary the term (length of the leases) to make the term up
to 999 years;
• Advising on or considering other terms that variation would have benefit to one or both
parties;
• Handling client monies and paying the premium to the landlord;
• Registering the freehold title in the Freehold Company at the Land Registry

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