Buying Freehold, but aren't eligible for collective enfranchisement

greenmoneysaver_2

Hello all,

We have a leasehold flat in a house converted into 3 flats. 2 OO, one rented out, but we have contact with the owner.

As we have less than 4 flats and are in a conversion we don't have collective enfranchisement.

2 questions

1) does this make buying the freehold more difficut?

2) if someone else in the building tried to buy the freehold on their own would we be advised?

We have spoken to the other OO and they are also keen to but the FH, but as we have only been here 1 year I fear they may think buying with us would slow them down (they wish to move) and may try and buy on their own!

Thanks in advnce

Jane

Leaseman_2

This would seem to be eligible for collective enfranchisement if a clear majority of leaseholders participate (ie 2 out of 3) and if there are no disqualifying factors (unlikely so long as the leases were originally for in excess of 21 years).

In general terms it is usually required of a freeholder that lessees are given first refusal so it would be hard to sell without notifying you (even to another leaseholder).

You say that the other OO is keen to move and might therefore be trying to buy the freehold on their own...
Does this indicate that the leases are now relatively short? If so their quickest solution would usually be by negotiating a lease extension.

Best advice is to keep talking to your other co lessees and to start the enfranchisement process by taking advice from a solicitor experienced in Leasehold Enfranchisement.

propertyman

You both understand that you cannot buy a freehold flat? You will still keep your individual leases and jointly own the freehold/ or be shareholder/,member of a company that does.

Agents may tell you will have share freehold but there is no such thing.

http://www.lease-advice.org/publications/documents/document.asp?item=11#2

I think you are confusing the resident landlord exemption with qualification. As long as there are two flats on long leases, a converted building is fine, unless the 3rd flat is a resident freeholder.