Purchasing part of freehold

t45 · 23 December 2016 at 1:09PM

Hello,
Was wondering if anyone would know the process of enquiring about purchasing part of the freehold?
I live in a conversion - 3 flats all leased but one of the flats owns all of the freehold.
Can I purchase a share of the freehold and if so how do approach the matter?
I havent had good relations with the freeholders who rent out their flat and who I believe do not manage the property very well - ie communal areas are always a mess - even though i am a leaseholder when there are jobs and repairs to do, I pay a part contribution towards these as do the other flats - ie if there is roof work we split it three ways - I also pay my ground rent etc.
What are the implications, if any of purchasing part of freehold?
I have a good lease on my flat but I believe purchasing a part of the freehold would give me a bit more of a voice in terms of suggesting what jobs are to be carried out, asking other tenants to keep the place clean and tidy etc etc. Currently I do not have a voice - it's the freeholder who decides on what jobs are to be carried out yet the cost is split between the flats!!!
Any ideas?
I expect I would need to approach the freeholder to ask if I can purchase a share of it? Could they refuse? And what is the normal procedure for this?
Many thanks!

Alter_ego · 23 December 2016 at 1:19PM

You cannot buy part of a freehold.
You can buy the freehold using a company you form with the other leaseholders. Each leaseholder then owns a proportion of the company, the company owns the freehold.

Hoploz · 23 December 2016 at 2:47PM

If the other residents are leaving a mess behind them then there's no reason why you shouldn't ask them to tidy up, or if it's ongoing then put up a note about it.

You seem to indicate you think it's unfair that you pay towards jobs done, but this is completely normal. Maintenance is normally shared between all flats in a certain way, as dictated in your lease. If there are three flats it's likely to be split three ways, or sometimes larger flats pay more or whatever but basically you do need to meet your contribution. This is what service charges are for.

If you think work is unnecessary then you can write to the freeholder the express this, or see the other leaseholder and ask them to write also, to give it more weight.

Soundgirlrocks · 23 December 2016 at 3:02PM

just to add any work that costs over and above £250 per flat will need to go through section 20 consultation , which quotes are obtained for the work, (and you can submit your own quote) its a dull process for the freeholder, but means you can see exactly what you are paying for and should have a say.

G_M · 23 December 2016 at 7:31PM

1) Speak to the freeholder. negotiate. If he agrees, you could pay him to buy in o the freehold, though as Alter ego says the best way is to become joint owners of a company that owns the freehold.

You could, however, become joint owners of the freehold (just as a married couple are usually joint owners of their freehold house).

2) If the current freeholder decides to sell, he has offer it first to the leaseholders, at the same price as he plans o sell to any 3rd party - he cannot offer it to the leaseholders for £X, and then if they decline, sell it for £X - £Y to someone else.

This is known as Right of First Refusal.

3) If several leaseholders band together they can force the freeholder to sell.

this is known as Collective Enfranchisement.

It is a right, subject to qualification, for the owners of flats in a building, and sometimes part of a building, to join together and buy the freehold of that building. The relevant Act is the Leasehold Reform Housing & Urban Development Act 1993 (as amended).

Provided at least 50% of the flats in the building, who are qualifying tenants, participate and the building qualifies the landlord cannot refuse. The procedure is quite complex and the correct notice needs to be served on the landlord, so it is advisable to use a specialist solicitor and surveyor when undertaking this process.

http://www.lease-advice.org/advice-guide/collective-enfranchisement-getting-started/

t45 · 13 February 2017 at 12:51PM

Many thanks for all of this advice e- it's very useful - I believe the first step is that I have to approach the freeholder and ask if they would be willing to sell part of freehold.
I assume that they agree upon the price in line with land value etc?
If they refuse to sell part of freehold, can I challenge this and if so on what grounds?
I actually have a long lease and some would say there's not point purchasing part of freehold if you have a long lease.
As a leaseholder can I also ask that certain covenants be updates, edited or changed? I assume for this I would cover the legal and admin fees as would be if granted part of purchase of freehold. Does anyone have any idea how much this would be approximately for admin and legal fees?
Many thanks,

G_M · 13 February 2017 at 1:04PM

t45 wrote: »

.... - I believe the first step is that I have to approach the freeholder and ask if they would be willing to sell part of freehold.
that's a good start
I assume that they agree upon the price in line with land value etc?
They may not agree at all!
And they can suggest any price they wish.
If they refuse to sell part of freehold, can I challenge this and if so on what grounds?
See the links in my post above
I actually have a long lease and some would say there's not point purchasing part of freehold if you have a long lease.
there are pros and cons.
As a leaseholder can I also ask that certain covenants be updates, edited or changed?
of course you can ask, but
a) unlikely the freeholder will agree
b) likely to require ALL the leases to be changed, requiring agreement by all leaseholders too
c) cost might well make it not worth while
I assume for this I would cover the legal and admin fees as would be if granted part of purchase of freehold. Does anyone have any idea how much this would be approximately for admin and legal fees?
Many thanks,

Can't help with actual costs I'm afraid.

Specifically what covenants do you have issues with?

t45 · 13 February 2017 at 1:14PM

Thanks so much – this is very helpful
Basically, our freeholder turned up unannounced demanding entry to lay pest control traps! We refused entry/ they said they could gain entry as freeholders.
In the lease there is a covenant that states that the freeholder can enter my property such a such times a year. I cant remember the specific working though.
Have really bad relations with freeholder since moving in 3 years ago due to noise disturbance from their tenants that has been a living nightmare. They are seemingly bias towards their tenants, hard to prove though.
There is a clause that has been added to accommodate their musician tennats, saying that they can have a such and such musical instrument inside and play it during such and such hours. The point is, they do play it between the allotted hours (before it is regarded as anti-social) but goodness they make sure they get their play-worth in so they will start at 9am and play thought the day an play right up until 8-9pm at night which they can do in line with noise legislation think cut off time is 11pm. Relations with both tenets and freeholder not good due to ongoing disputes over noise. But there is no soundproofing at all and they continue to play – my bedroom is above their living/playing space.
Would like to see if there is anything we can do to have this clauses edited to accommodate those living around these tennats.
I assume that if purchased part of freehold (if they agree – it is however very unlikely), would have more of a voice and say in how the building is managed.
Feel very much like been rail roaded by freeholder since purchasing property. Pay all of my ground rent.

t45 · 13 February 2017 at 1:25PM

I have also read that leaseholders must qualify for right to buy under provisions of the Leasehold Reform, Housing and Urban Development Act 1993.
I am quite sure i meet the criteria: building must contain at least 2 flats/ at least two 3rds of the flats must be on long leases/ the building must be self-contained
I believe one can ask to purchase part of freehold after living in property for 2 years.
I guess i need to work out whether it is, as you have rightly suggested, worth the money.
There are 3 flats in the building. 2 leaseholders an 1 freeholder flat.
Am I right in understanding that I first approach the FREEHOLDER and ask if they willing to VOLUNTARILY SELL and negotiate price. If they say NO then I perhaps can COMPULSORILY acquire part if freehold via legal process using the 1993 Act.
This perhaps sound silly, but is it almost worth waiting, holding off and hoping the freeholder sells his flat and with it offers the freehold to the remaining flats?
Looking at my situation, I would say that I am looking at purchasing part of freehold in order to give me more of a voice in the building in which I live and in which I won a flat and live on site. I think this is certainly a benefit given that I feel that since I purchased the flat i have little if not no voice .
Am i as light in assuming if i want to gauge a approximate cost of part of freehold I would instruct a surveyor to value the property, each flat and the land?

eddddy · 13 February 2017 at 1:28PM

t45 wrote: »

There is a clause that has been added to accommodate their musician tennats, saying that they can have a such and such musical instrument inside and play it during such and such hours.

A clause added to what?

A clause cannot be added to your lease without your consent.

Or do you mean the clause was added to the lease at some point before you bought it.

t45 · 13 February 2017 at 1:34PM

Apologies for being unclear – yes it seems that a clause was added to the lease to accommodate music playing in one of the flats. It was added before I purchased the property, and have no idea when it was added but think it was within the last 5-10 years.
If I wanted to add or amend a clause, as a lease, can I go about doing this and if so how?

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Purchasing part of freehold

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