Have you been offered to buy the freehold of your flat from the current freeholder? Do you hit the criteria required to purchase my freehold? Who do I need to speak to, to execute the sale?
Our conveyancing experts provide answers to these questions and more:
What Are the Set Criteria for Applying to Purchase the Freehold?
- In your block of flats, at least half of the owners have to agree to purchase the freehold with you.
- If there are only two flats in a block, 100% of the flats have to agree to purchase.
- The lease will need to have at least 21 years or more remaining (at least two thirds or more of the flats are required to meet this).
- 75% of the block of flats has to be owned by leaseholders for residential purposes.
What Are the Costs Involved If You Meet All the Set Criteria?
- Legal Fees - Legal fees are necessary in order to execute all documents and ensure the freehold is successfully transferred into the co-freeholders’ possession. This is a timely and intricate matter that should be carried out by specialist solicitors.
- Valuation Fees – These are to be completed by a surveyor that is regulated by the RICS to gauge the current value of the flats and the total value of the freehold.
- Stamp Duty/Land Transaction Tax – This is dependent on the value of the properties.
- Freeholder’s Fees – These will be set out by the freeholder.
What Are the Benefits in Purchasing the Freehold to My Flat?
- Owning the freehold will give you a bit more freedom.
- There is no ground rent to pay as you and your fellow co-freeholders will own the grounds the block of flats is built on.
- There are fewer conditions, as included in your leasehold agreement (e.g. asking for permission to own pets etc.).
- You can now control maintenance expenses (cleaners, gardeners, etc.).
- Owning the freehold adds further value to your flat and is especially appealing to new potential buyers.
- If you do decide to purchase the freehold, you may be given the option to extend the lease to 999 years.
What Are the Consequences of Purchasing the Freehold to My flat?
Although you may have a new-found freedom from your previous freeholder, all of those responsibilities and legal requirements, such as health and safety checks and fire safety, all become yours and your co-freeholders obligation to ensure all previous checks are executed appropriately.
Disputes with neighbours in your block can be quite common, especially if there are strenuous delays during the process. To combat this, you need a specialist solicitor who is highly experienced in assisting clients with purchasing their freeholds.
Here at Howells, we ensure that the purchases of freeholds are executed by solicitors that are fully-accustomed to dealing with meticulous cases, such as these with the goal of a smooth and timely completion. Get in touch today to discover how we can help you.