Buying Freehold of Property

mimbrim

Wrote to a property management company to find out what the price would be to purchase freehold for a property.
They have written back, stated an amount and also mentioned they will be transferring their interests to another company within the next few months.
They say they are able to proceed and the offer that they have provided will last for 8 weeks.
My concern regarding this matter is what would happen if we were to pay and the company went into administration.
Their letter indicates they are authorised and regulated by the FCA as well as The Property Ombudsman.

Has anyone been in a similar position and if so how did you find the process?

Thanks in advance.

G_M

mimbrim wrote: »

Wrote to a property management company to find out what the price would be to purchase freehold for a property.
is this just a standard freehold property that you wish to buy? Get a conveyancer and follow the standard purchase process.


Or is it a leasehold flat that you own?



They have written back, stated an amount and also mentioned they will be transferring their interests to another company within the next few months.
They say they are able to proceed and the offer that they have provided will last for 8 weeks.
So either Complete within the next 8 weeks or wait and purchase from the new owner.

My concern regarding this matter is what would happen if we were to pay and the company went into administration.
Why would you pay in advance of the purchase completing? And if thecompany went into administration after, why would that affect you?.

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mimbrim

Thanks for your response.
Think i need to clarify. The property (house) was bought with approximately 85 years remaining. That has now shrunk further. To make the property more saleable we have been advised (indpendently) to buy the ourtright freehold from the management company. As mortgages usually arent offered with a lease of less than 75 years the market would be pretty much restricted to cash buyers.
The risk is that the new Freehold management company may offer a different price to purchase the freehold. Haven't been in this position before thats why I am posting the query.
Thanks.

G_M

So it's a leasehold house.


Your concern seems to have moved from "what would happen if we were to pay and the company went into administration." to "the new Freehold management company may offer a different price".


In that case, complete the purchase asap. Assuming of course it's a good price.


More info here:


https://www.lease-advice.org/advice/find-the-right-information-for-you/?step-option=62

eddddy

mimbrim wrote: »

My concern regarding this matter is what would happen if we were to pay and the company went into administration.

Assuming you're using a solicitor, the funds will be held in the solicitor's account until completion.

So if the freeholder goes bust, your solicitor will still have your money.