Advice to buying the Freehold on my flat - please!

emjay32

Hi,

We recently bought a flat, in April of this year which was leasehold. Last week we received a letter giving us the opportunity to buy the freehold interest of the property.

We live in a purpose built flat. There are two flats on the site, however we have been unable to speak to our neighbour about her thoughts on this. I was going to get a bit more clued up on everything and then contact her.

I have no idea what to do now, with out spending lots of money on a valuation or a solicitor. I have looked at citizens advice, but in my area they do not help on these type of housing issues.

I think in the long term, it would be sensible to buy it. I just don't know what to do now!

Any advice greatly received!

EJ

propertyman

If the freehold has been formally offered then the price put in the notice is the price, there is no negotiation. Your valuation is only to confirm whether for you and your neighbour it makes financial sense.

Remember that this offer is based on the FH being able to sell it someone else for that price but must give residents the chance to do so, at that price, before selling it.

You will have to agree to buy it together or for both of you to agree that you are the nominated purchaser.

http://www.lease-advice.org/publications/documents/document.asp?item=12

the above is a helpful guide

emjay32

Thanks for your help.

The freehold is being sold by auction...

propertyman

emjay32 wrote: »

Thanks for your help.

The freehold is being sold by auction...

if you work through the guide it covers the disposal by auction.

The same applies it's just that the price is determined at auction and the other parties are notified of your interest

Richard_Webster

If you have been given the right of first refusal then go to the auction out of interest but do not bid!

You don't want to increase the price you may have to pay do you?

Once it is "sold" at the auction then you can require it to be transferred to you and the other lessee for the same price. A property company bidding for it will take the risk that the lessees will not be interested.

propertyman

Richard_Webster wrote: »

If you have been given the right of first refusal then go to the auction out of interest but do not bid!

You don't want to increase the price you may have to pay do you?

Once it is "sold" at the auction then you can require it to be transferred to you and the other lessee for the same price. A property company bidding for it will take the risk that the lessees will not be interested.

The right to acquire only arises where the landlord is in breach of the R2FR- if they have served the notice - section 5b,- then they cannot do so under the section 12 provisions.

If it were possible very few would be sold at auction!

Sorry... if I misread your post and you meant that the notice had not been served/invalid

They can of course hint at exercising right to manage manager appointment or enfranchisement which would put off potential buyers as the vendor must disclose that, and depress the value.