Selling a freehold

jayencee

I own a flat in a block of 4, which I am now thinking of selling. I also own the freehold of the building and once the flat is sold, there will be little point in holding onto the freehold. Am I right in thinking that I have to offer all the other leaseholders the right to buy the freehold first, before I can offer it to my purchaser? All the flats are rented out, not sure if this makes any difference? (I have had a look at the Lease Advisory site but it refers to collective enfranchisement which this won't be, unless all the others decide to get together).

Also, what would happen if more than one leaseholder was interested in buying the freehold but they didn't want to do it together?

Fire_Fox

You need to discuss this with your conveyancing solicitor as there is a strict protocol that must be adopted before you can freely sell. AFAIK the current leaseholders only have the right to buy the freehold (collective enfranchisement) if they nominate one or more persons to buy it: i.e. they can all buy it together or agree on who they choose to buy the freehold. Otherwise you can sell to whomever you wish, e.g. an individual leaseholder.

Richard_Webster

Basically you have to give the Right of First Refusal to the lessees of the flats and the other three can together require to buy it for the price you proposed selling it for. (They need a majority of the lessees - 2 out 4 isn't a majority). You have to give them 2 months to make up their minds. If they don't serve a counter notice saying they want to buy it within that period you are free to sell for the same price to your buyer.

theGrinch

short hand is its called a "section 5"