Purchase of Freehold - Already extended my lease....

Peater

Hi All,

I recently completed extending my lease on my flat.

And not a week later, i get a letter offering purchase of the freehold.

We (the leaseholders) had a meeting about it and just under half of the leaseholders were interested in going ahead. Someone suggested that i join (to help them make up the 50%) but pay a smaller contribution.

Can anyone tell me what the benefits of me joining this group, and if so, should i actually be entitled to contribute less considering i have already extended?

Having just chucked £10k+ at the lease, i'm a bit loathed to spend more. Would it raise the value of my property to be able to sell a stake in the freehold?

I'm a bit befuddled.

Cheers

Peater

tim123456789

The amount that any one LH should pay for joint enfranchisement should reflect what percentage of the GR, marriage value and reversion value their current lease represents.

So yes, if you now have a 150 years lease at a peppercorn rent you will pay a small faction of the neighbour with the 60 year lease and the 100 pound rent.

The latter will be buying out their GR, MV and RV that you have already bought. You shouldn't be asked to pay for it again effectively subsidising their buy-out costs.

Though making them see it that way could be a long haul.

Of course all interested parties will have to pay equally for the value in the flats not joining in the enfranchisement.

Leaseman_2

It is usually better to be involved in the freehold purchase than not. That way you will have equal say in future management of the building.

Fire_Fox

Purchasing the freehold title is separate to extending the long lease, this has a separate registration at land registry. How many other people still need to extend? Although it's more common for lease extensions to be granted at cost to leaseholders who are also freeholders, there isn't any fundamental reason why you cannot charge and reinvest the money into the building for the equal benefit of all. In other words next time there are major works required you just dip into the pot.

tim123456789

Fire_Fox wrote: »

Purchasing the freehold title is separate to extending the long lease, this has a separate registration at land registry. How many other people still need to extend? Although it's more common for lease extensions to be granted at cost to leaseholders who are also freeholders, there isn't any fundamental reason why you cannot charge and reinvest the money into the building for the equal benefit of all. In other words next time there are major works required you just dip into the pot.

Whilst possible, such a deal is unlikely to be equitably calculated towards the OP.

The sums agreed for payment are likely to very much benefit the owners with the shorter leaeses.

Peater

Thank you all for your replies. Plenty to think about.

Currently there is only 1 other owner who has extended. Leaving 12 flats with sub 80 year leases.