Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 3 weeks ago 35
Some time ago I asked for your views about purchasing the freehold of the development where we live. Your comments were very helpful.
On the 21st December the solicitors, acting on behalf of the bank, served a notice pursuant to section 5 of the landlord and tenant act 1987, prior to the property being sent to auction in May this year.
A group exceeding the requisite number of the qualifying tenants have served a section 6 notice on the seller by the deadline, naming all those who are accepting the offer with their addresses.
The notice served by the bank’s solicitors to the qualifying tenants invites us to purchase the FREEHOLD. Our understanding of the Landlord and Tenant Act 1987 (as amended) is that we are only legally entitled to buy the FREEHOLD at the price reached at auction. However, we have now been told that the sale will include the leases of the 45 unsold flats, the leases of some commercial premises and an area of land not yet developed. This is likely to put the price way beyond what the qualifying tenants can afford, but they will have sufficient funds to purchase just the freehold. It will be in the order of 7 times the freehold cost.
What we would like to know is , under the Act, can we insist that the freehold for the properties is sold separately from the leases.
We are looking to employee a solicitor to advise us in connection with the remainder of the procedure to enable the qualifying tenants to successfully purchase the freehold of the property pursuant to the Landlord and Tenant Act 1987. However, there is little point in taking things to the next stage; indeed we are unlikely to get sufficient support to do so, if the freehold is not sold separately.
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