Freehold – to buy or not to buy – and HOW?

by Readers Question

17:44 PM, 19th August 2013
About 5 years ago

Freehold – to buy or not to buy – and HOW?

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Freehold – to buy or not to buy – and HOW?

I am new to this forum and also reliability new to being a landlord so bear with me. Freehold - to buy or not to buy

I say I am new to being a landlord by that I mean I only have one property but have had it for some years now.

What I would like to know is…

Is it worth buying the Freehold to my apartment?

How much is it likely to cost?

Are the current owners/landlords obliged to sell it to me?

Anything else I should know i.e. pros and cons

Thanks in advance.

John



Comments

Puzzler

16:40 PM, 20th August 2013
About 5 years ago

http://www.lease-advice.org/publications/documents/document.asp?item=11

All the details are on this website but here is the "getting started" page

Duncan Brown

17:02 PM, 20th August 2013
About 5 years ago

You cannot purchase the Freehold to solely your flat.
However, legislation permits yourself and fellow Leaseholders in your building to formally apply to your Landlord to purchase the Freehold to your building.
There are a large numbers of pros to purchasing the Freehold to one's building (the process known as 'Enfranchisement'), e.g. you gain control of the building, with its maintenance, management, and insurance, you can 'lose' your Landlord and their Ground Rent demands, you can extend your Leases, and if there is room to do so in the communal areas, e.g. surrounding gardens, create extra parking spaces to rent out for an income stream.
For example, the flat owners in your building can gain the benefit of the commission for placing the building's insurance policy with a particular insurer/broker.
You should instruct solicitors and a surveyor experienced in this niche area law.
A surveyor can let you know what the value of your building's Freehold is, and even assist in the negotiations with your Landlord/their professionals.
There are few cons, save for some time, effort, and of course, the premium to pay your current Landlord, etc.
One excellent pro is the ability to increase the value of all flat owners' leases by increasing the terms of their Lease, something an experienced solicitor in this area can advise on.
Best of Luck!


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