Page 8 - freehold_enfranchisement

A step by step guide to buying the Freehold of your block 7

• Registering all Deeds of Variation in the Freehold Company at the Land Registry;
• Obtaining mortgagee’s (mortgage company's) consent to such registration of a Deed
of Variations;
• Witnessing any deeds or discharge forms required by mortgage companies to enable
registration that your lease has been extended with the Land Registry; and
• Lodging a case with the First Tier Tribunal where terms cannot be agreed.

Step 5 - Consider granting new 999 year leases

Granting new 999 year leases may be strategically incorporated into the freehold purchase if
there are reasons why you would want everyone at the site to have new leases, This could be
where principal terms need varying, for example, if there is no interest clause, no incentive to
pay service charge.

If more fundamental changes are required a complete modern lease could be substituted.

It should be noted that in law a lease variation or substitution cannot be forced on a party - it
has to be mutually consented to. However, if the resolution to grant new leases on x, y, z terms
is approved by a Board of Directors it is only this type of lease/deed of variation that is available,
until an alternative is approved.

A freehold shareholder cannot be forced to take this type of lease/varied lease and would be
bound by the original lease until such time as they choose to participate. A clear incentive would
be the reduction of ground rent to a peppercorn rent.

Going Forward
Other considerations on becoming freehold shareholders.

Once you have acquired the freehold of your block, you may require further assistance with
building works, legal aspects, company formation, company constitutional issues and/or the
day-to-day management of the property.
Ringley can help. To find out more follow these links:

Building Engineering Department

Ringley Law
Block Management Team

Small Block Support Unit

With considerable experience in all aspects of property, we can deliver bespoke tailor-made
solutions for you or provide skilled help on specific aspects of your freehold purchase as you
need it.

www.leaseholdguidance.co.uk Solicitors | Surveyors | Accountants | Property Managers
Tel: 0207 428 1977 Presented by the Ringley Group