Can I buy the freehold to my flats?
3:39 PM, 4th April 2022, 4 years ago
16
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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
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Member Since July 2019 - Comments: 7
10:29 AM, 5th April 2022, About 4 years 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?
Member Since May 2015 - Comments: 8
10:52 AM, 5th April 2022, About 4 years 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.
Member Since April 2020 - Comments: 159 - Articles: 1
11:01 AM, 5th April 2022, About 4 years 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.
Member Since July 2013 - Comments: 205
8:50 AM, 9th April 2022, About 4 years 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?
Member Since February 2019 - Comments: 34
10:28 AM, 9th April 2022, About 4 years 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.
Member Since July 2013 - Comments: 205
1:14 PM, 9th April 2022, About 4 years 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?
Member Since April 2020 - Comments: 159 - Articles: 1
4:18 PM, 10th April 2022, About 4 years 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.
Member Since July 2013 - Comments: 205
9:22 PM, 10th April 2022, About 4 years 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 ?
Member Since August 2022 - Comments: 3
10:18 AM, 27th August 2022, About 4 years ago
Reply to the comment left by sam at 10/04/2022 – 21:22
No it doesn’t apply to Right to Manage. We own 5 flats in a block of 12 and we have been able to set up a RTM company.
Member Since April 2020 - Comments: 159 - Articles: 1
2:59 PM, 30th August 2022, About 4 years ago
Reply to the comment left by sam at 10/04/2022 – 21:22
Right to Manage is different … at least 50%.
Right to Enfranchise is … more than 50%.