Legislation makes it easier today for a leaseholder to control and purchase a freehold. The legal process known as collective enfranchisement enables leaseholders as a group to purchase a freehold at its fair market value. Therefore, leaseholders can purchase a freehold. However, they can also apply together to retain the right to manage the building.
Naturally, if you talk the situation over with a solicitor, you can review the advantages and drawbacks of buying a freehold. One of the major advantages is free extensions to the lease. If you purchase a freehold, you normally can extend a lease for free with the exception of the legal fees. By buying the freehold, you control the service charges and typically are not responsible for paying the ground rent.
Contact a Solicitor with Your Enquiries
As a leaseholder, you already know that a lease is accompanied by a number of conditions. Therefore, a freehold purchase can give you an edge with respect to negotiation and finances. That is why it pays to contact a commercial solicitor in London when a commercial element is in the building. By working with a legal representative, you can avoid any issues during the buying process.
A Purchase Can Take Time
For example, if you buy a freehold, it can turn out to be an expensive manoeuvre if you are not careful. Naturally, you want to make sure that buying a freehold share will add value to your portfolio. It also takes time to make this type of purchase.
A Lengthy Process
That is why you need legal guidance along these lines. The process generally takes about a year’s time. However, it can extend for a longer period, especially if the freeholder attempts to stop your efforts. Therefore, if you want to make a freehold purchase your goal, you need to learn to be patient, if not tolerant.
Making a Freehold Purchase Can Be Challenging
Besides working with a solicitor, you also need the cooperation of your neighbours. If you are letting a space in a large building, you may find it difficult to organise a team of buyers. You always have more of a chance of quarrels if a building is large. Also, if a commercial element is involved, it should not take up more than 25% of a building that features flats.
That is why you need to have the support of a solicitor if you are interested in making a freehold purchase now or at any time in the future. You will need his or her guidance to calculate a freehold’s value and determine the other fees. These fees include the legal costs, valuation fees, stamp duty, and freeholder’s fees.
Also, keep in mind that using a right to manage is more affordable than purchasing a freehold. In this instance, you do not pay a fee for this right. A right to manage does not necessitate a valuer. Therefore, you can save a substantial amount in professional fees.
Know what you are doing when you take on this type of transaction. Talk to a solicitor first before you proceed.