Can I buy the freehold to my flats?
3:39 PM, 4th April 2022, 4 years ago
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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 2013 - Comments: 205
5:08 PM, 30th August 2022, About 4 years ago
Reply to the comment left by BernieW at 30/08/2022 – 14:59
Thank u Bernie.
My question was 50% of what?
‘Qualifying’ lessees or ‘total’ leaseholders?
In my example, if 50% (or more) of the leases r non qualifying, how r the remaining lessees ever going to b able to enfranchise or go for RTM if it is ‘total’ lessees.
If it is ‘qualifying’ lessees, then a ‘single only qualifying’ lessee may enfranchise.
Member Since April 2020 - Comments: 159 - Articles: 1
5:13 PM, 30th August 2022, About 4 years ago
Reply to the comment left by sam at 30/08/2022 – 17:08
The percentage is of qualifying leaseholders. Thus you can have a situation where RTM and/or RTE cannot be undertaken.
Member Since July 2013 - Comments: 205
5:33 PM, 30th August 2022, About 4 years ago
Reply to the comment left by BernieW at 30/08/2022 – 17:13
You mean the %age is of ‘total’ leases?
Ie not possible to enfranchise when total ‘qualifying’ lessees is less than 50% of ‘total’ leases.
Member Since August 2022 - Comments: 3
8:18 AM, 31st August 2022, About 4 years ago
Reply to the comment left by sam at 30/08/2022 – 17:33
My understanding is that in order to proceed with RTE at least two-thirds of the total number of flats in a block have to be owned by qualifying tenants.
In our case we own five (soon to be six) out of the total of 12. So all our flats are excluded. That leaves 7 qualifying tenants as the remainder are all owned by individuals. Two-thirds of 12 is 8 so there are not enough qualifying tenants to proceed. This is very annoying but the good news is that our 5 flats did qualify for RTM and in cooperation with the other tenants we have recently acquired this.
Member Since July 2013 - Comments: 1264 - Articles: 1
8:33 AM, 1st September 2022, About 4 years ago
It’s true you cannot use the statutory route (and right). But there’s nothing to stop you buying it through private negotiation. The cost will depend on the ground rent and length of leases etc. You can look up any lease extension or enfranchisement calculator for approximate cost. Of course the current freeholder would have to agree so you must decide if it’s worth your while. You may need a freehold valuer (which are quite rare outside London) to suggest a fair price and substantiate your offer.
Member Since August 2022 - Comments: 3
9:07 AM, 1st September 2022, About 4 years ago
Reply to the comment left by Puzzler at 01/09/2022 – 08:33
Thank you for your helpful advice. We did try to buy the freehold in 2015 when it became available. The valuation then was £63,000 but we were hopelessly out-bid by one of the large operators in the sector. I doubt that they would agree to sell but now that their income stream has been substantially reduced following our acquisition of RTM it might be worth approaching them