Collective Enfranchisment - Pros and Cons

Kad_Williams

What were the Pros and Cons for you of jointly jointly the freehold on your building? Particularly period buildings! And particularly when the freeholder is the council.

I'm aware there are ample sites that display their own lists of reasons for and against this but I'm keen to explore any hidden issues that I wouldn't have thought about. This will help me when I soon discuss the prospect of collective enfranchisement with my neighbours.

If anything that comes to mind let me know!

My first thought, for example, is that I can't paint or fix the render on the outside of my house without permission, and paying legal and admin fees. But the job they did last time was so poor that I wouldn't want them to touch it again.

See the kind of thing I mean?..

eddddy

Kad_Williams wrote: »

My first thought, for example, is that I can't paint or fix the render on the outside of my house without permission, and paying legal and admin fees. But the job they did last time was so poor that I wouldn't want them to touch it again.

You mention jointly buying the freehold of your 'building', then you talk about you having responsibility for repairing the outside of your 'house'.

So what type of a property / building is it?

• Is it a building that is essentially a house, that is divided vertically from other houses?

• Or is it a building that is divided horizontally from other properties - i.e. a flat / maisonette / apartment etc (If so, how many properties are there in the block?)

Cash_Cow

Too many horror stories of exploitation and extortion in managing agent charging way too much for maintenance and refurb. We bought the freehold for 3 flats and pay £75 a quarter and have £4k stashed... I admin the holding company which is a hassle with fines if I forget and I do the buildings insurance - £150 each. No rip offs here...

Kad_Williams

Apologies, Eddddy - I live in a maisonette in a block of 3 flats. The building is a victorian terrace.

eddddy

Kad_Williams wrote: »

My first thought, for example, is that I can't paint or fix the render on the outside of my house without permission, and paying legal and admin fees. But the job they did last time was so poor that I wouldn't want them to touch it again.

Unless you have an unusual lease, the render on the outside of the building doesn't belong to you - it belongs to the freeholder.


So if 3 of you become joint freeholders, you will have to jointly agree the details of things like repairing that render.

If you all have a similar mindset - that should be ok.

But if...

• You think a 'good quality' builder should be hired for £2,000
• Leaseholder 2 thinks his mate Bob from the pub should do it for £250
• Leaseholder 3 thinks it's not important to fix it, and doesn't want to spend any money on it

Then you have a problem to resolve

Kad_Williams

@Eddddy: This is all true. Though, presumably if I wanted to take on the responsibility of these repairs myself without implicating the other freeholders (and without having to ask permission from the council!). So if Freeholder 3 didn't want to pay and I didn't mind then that wouldn't be a problem?

eddddy

Kad_Williams wrote: »

@Eddddy: This is all true. Though, presumably if I wanted to take on the responsibility of these repairs myself without implicating the other freeholders (and without having to ask permission from the council!). So if Freeholder 3 didn't want to pay and I didn't mind then that wouldn't be a problem?

It's a jointly owned wall, so you'd need consent from the other 2.

But I guess most people would agree to having their wall repaired, if somebody else offered to pay for it. (Unless maybe they objected to your choice of paint etc.)

But if they say they don't want you to repair it, you can't make them let you.

Cash_Cow

Can be a can of worms there Kad - best to do it as a collective. Majority vote if that fails.

Have been exactly here - Flat 1 has no concept of dealing with builders - more expensive means better, always! They see him coming a mile off and rub their hands! I'm the opposite...

In my experience you need a tight set of freehold company rules - but without the experience you wont know how to draft them. Getting sense out of any solicitor that helps you buy the freehold will be tricky - but you could select one based on good answers to such questions - if you get through to the organ grinder- and they are bothered - and they are knowledgeable. It could be all you need is a company memorandum that you can draft yourselves - but needs to be binding.