Can I buy the freehold to my flats?

Can I buy the freehold to my flats?

15:39 PM, 4th April 2022, About 2 months ago 8

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Hi, I own 8 flats in a block which is all of the flats in the block.

I have been told I can buy the freehold because I own more than 50% of the individual flats.

However, I have also been told I can’t because I am not resident within the block and the 50% rule does not apply even though I own 100% of the flats.

Can anyone help explain this, please?

Many thanks.

Chris



Comments

by Mike Newman

10:29 AM, 5th April 2022, About 2 months ago

I am not a lawyer but our experience is that we owned 1 then 2 and finally 3 out of 3 of the properties under same lease with the freeholder. We were not resident in any of the properties. We applied to buy the freehold and were able to do so. I would like to say it was straightforward but actually it was like puling teeth and the freeholder even tried a trick at the end over what can best be described as a ransom strip. But we got there in the end. Hope this helps?

by James Masters

10:52 AM, 5th April 2022, About 2 months ago

You need to be a 'qualifying' leaseholder - and if you own two or more in the same block you are not.

Use the lease advise dot org website for the best source of information.

by BernieWales

11:01 AM, 5th April 2022, About 2 months ago

Leaseholders can force the sale of the freehold of their block of flats using Right to Enfranchise. It requires "more than 50%" of the qualifying leaseholders to participate. If all 8 flats in your case had 8 separate leaseholders - that would mean at least 5 would need to participate.

However, there are rules for qualifying. See the Leasehold Reform Housing & Urban Development Act 1993. Where a leaseholder own more than two flats in the building - either solely or jointly - they do not qualify in the calculation of the "more than 50%".

Thus if you own all the flats in the building, you cannot use Right to Enfranchise to force the sale/purchase.

But there is no reason why you cannot talk to your freeholder and agree a deal.

by sam

8:50 AM, 9th April 2022, About 2 months ago

Reply to the comment left by BernieWales at 05/04/2022 - 11:01
If Chris owns only 6 of the flats n I own the other 2, wud that make me the only qualifying leaseholder with more than 50% n thus able to enforce Right to Enfranchise? (Presumably, the same logic applies if the ratio was 7 n 1?)

Where does that leave Chris then? - if he joins in the enfranchisement, he wud become the majority shareholder n I the minority. Can I refuse to let him join?

by Daveknowstheregs

10:28 AM, 9th April 2022, About 2 months ago

Reply to the comment left by sam at 09/04/2022 - 08:50My take on Bernie’s meaning is you need 5 or more separate leaseholders to qualify to freehold the block.

by sam

13:14 PM, 9th April 2022, About 2 months ago

Reply to the comment left by Daveknowstheregs at 09/04/2022 - 10:28
That’s exactly my confusion - if Chris owns 5 units which disqualifies him from voting, the owners of the other 3 flats, if your logic prevails, r then deprived of their right to enfranchise?

by BernieWales

16:18 PM, 10th April 2022, About 2 months ago

Reply to the comment left by sam at 09/04/2022 - 08:50
Your would be the only qualifying leaseholder - but you alone is not "more than 50%" of the long leases, Sam.

by sam

21:22 PM, 10th April 2022, About 2 months ago

Reply to the comment left by BernieWales at 10/04/2022 - 16:18
TQ Bernie. Yes I understood that’s what daveknowstheregs said. Just find it puzzling. Wud hv expected 50% of ‘qualifying’ leases to suffice. Even lawyers can’t b that dim surely.

Is that the same with right to manage ?


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