Offering advise in the purchase of freehold interest.
What is Collective Enfranchisement?
Leasehold enfranchisement is the technical name for the process of acquiring a new lease (i.e. lease extension) or purchasing the freehold interest. Purchasing the freehold interest is also known as Collective enfranchisement.
Collective enfranchisement is legal right for the owners of the flats to group together (i.e. collectively) and purchase the freehold interest.
Can I proceed to buy the Freehold building?
There are two ways to purchase the freehold interest either informally or formally. With regard to the informal route you can approach the Freeholder and make the enquiry to the terms for purchasing the freehold building.
The other method is the formal route where you have the right to purchase the freehold interest. This falls under The Leasehold Reform, Housing and Urban Development Act 1993, but you are required to satisfy the qualifying criteria under this Act.
How much can I expect to pay?
Regardless of which route is chosen, the premium payable to purchase the freehold interest is on a case by case basis and dependent on the circumstances. For example, does the freehold building include any commercial element, how many flats are in the building, is there any reversionary value applicable, etc.
How Blackacre can assist
We are qualified chartered surveyors that act for both Freeholders and Leaseholders and can assist with either statutory or non-statutory route of collectively enfranchisement.