Buying freehold from E&M before reforms come in

monkeymagoo

Hi, we're considering buying our freehold from E&M Management but going off what I've read here and their TrustPilot reviews, I'm worried I might be just opening up a whole world of misery. They've quoted a couple of thousand to buy it, but will there be hidden costs after I agree to hand over what they originally quote? Is it a difficult process? I want my freehold but it's on a 999 year lease so if it's going to be painful/stressful I'm not sure it's even worth it. Especially interested to hear from people who have gone through the process recently (particularly during lockdown) since I imagine the process is even slower than usual. 

Would I be better off waiting for the new laws to be decided/come into effect before setting off on this journey? 

Thanks

AdrianC

Nobody knows what/when/if these "new laws" will be.

All that's happened so far is that the gov't has expressed a desire to do something. No more than that.

From here to actual legal force, the drafts have to be written and published, then debated and amended and passed by both houses. The next election is not much over three years away, and they have quite a lot on their plate before then... And that assumes there won't be a change of leader of the party or responsible ministers, with different priorities, before then.

eddddy

monkeymagoo said:

They've quoted a couple of thousand to buy it, but will there be hidden costs after I agree to hand over what they originally quote? 

Ask them for a complete list of the costs you'll have to pay, and whether they are fixed.

In total, you will have to pay...

1. The price of the freehold
2. E&M's costs - that might include legal fees, valuation fees, admin fees etc
3. Your own legal fees (and valuation fees, if you incur any)

I'd guess they've quoted 1) the price of the freehold.
Have they quoted 2) - their total costs? Double check that they are the full list of fees. 
You'll need to get your own quotes for 3)

In terms of "misery" - you just instruct your solicitor and forget about it. (It might be stressful if you have a deadline, for example if you want to sell.)

As with all property transactions, nothing is finalised until contracts are signed and exchanged - so any of the following could happen...

• E&M could change their minds about selling the freehold to you and walk away
• You could change your mind about buying the freehold and walk away
• E&M could tell you that they've increased the price they want for the freehold
• You could tell E&M that you've reduced the amount you're willing to pay for the freehold

monkeymagoo

Thanks for the great advice, really appreciate it. In terms of their legal fees, the letter says the cost quoted: "...includes the £40 Land Registry Fee... and our processing charges" which I guess may or may not mean legal fees. I'll contact them and try to find out.

WidowTwanky_2

Hello. Did you get any further with this? I'm interested in buying freehold from them also...