To buy freehold or not?

mizzbonita

Hi

I own a leasehold flat with over 100 years left on the lease. I extended it about 6 years ago. I rent the flat out.  

That flat is a Victorian conversion and the flat above mine is up for sale. I was hoping to purchase it but I don’t think I can financially commit to it. 

I was wondering where to try and purchase the freehold or a share of the freehold. Is it worth doing? 

eddddy

mizzbonita said:

I was wondering where to try and purchase the freehold or a share of the freehold. Is it worth doing? 

Maybe it's worth buying the freehold, if the freeholder will sell the freehold for a reasonable price.

But if the freeholder asks for a 'silly' price, then it wouldn't be worth doing.

Or if the freeholder refuses to sell the freehold to you, you're stuck.



Alternatively, you and your neighbour could work together and force the freeholder to sell the freehold to you jointly at a reasonable price - it's called "Collective Enfranchisement". 

Here's some info: https://www.lease-advice.org/advice-guide/ce-getting-started/

(But you and your neighbour have to work together on "collective Enfranchisement", you can't do it by yourself.)

mizzbonita

eddddy said:

mizzbonita said:

I was wondering where to try and purchase the freehold or a share of the freehold. Is it worth doing? 

Maybe it's worth buying the freehold, if the freeholder will sell the freehold for a reasonable price.

But if the freeholder asks for a 'silly' price, then it wouldn't be worth doing.

Or if the freeholder refuses to sell the freehold to you, you're stuck.



Alternatively, you and your neighbour could work together and force the freeholder to sell the freehold to you jointly at a reasonable price - it's called "Collective Enfranchisement". 

Here's some info: https://www.lease-advice.org/advice-guide/ce-getting-started/

(But you and your neighbour have to work together on "collective Enfranchisement", you can't do it by yourself.)

Thanks 

It is just my flat and theirs in the building. There’s just the two flats. 

eddddy

mizzbonita said:

eddddy said:

mizzbonita said:

I was wondering where to try and purchase the freehold or a share of the freehold. Is it worth doing? 

Maybe it's worth buying the freehold, if the freeholder will sell the freehold for a reasonable price.

But if the freeholder asks for a 'silly' price, then it wouldn't be worth doing.

Or if the freeholder refuses to sell the freehold to you, you're stuck.



Alternatively, you and your neighbour could work together and force the freeholder to sell the freehold to you jointly at a reasonable price - it's called "Collective Enfranchisement". 

Here's some info: https://www.lease-advice.org/advice-guide/ce-getting-started/

(But you and your neighbour have to work together on "collective Enfranchisement", you can't do it by yourself.)

Thanks 

It is just my flat and theirs in the building. There’s just the two flats. 

Yes - I understood that there are only 2 flats in the building. 

My answer was specifically based on there being 2 flats in the building.

mizzbonita

eddddy said:

mizzbonita said:

eddddy said:

mizzbonita said:

I was wondering where to try and purchase the freehold or a share of the freehold. Is it worth doing? 

Maybe it's worth buying the freehold, if the freeholder will sell the freehold for a reasonable price.

But if the freeholder asks for a 'silly' price, then it wouldn't be worth doing.

Or if the freeholder refuses to sell the freehold to you, you're stuck.



Alternatively, you and your neighbour could work together and force the freeholder to sell the freehold to you jointly at a reasonable price - it's called "Collective Enfranchisement". 

Here's some info: https://www.lease-advice.org/advice-guide/ce-getting-started/

(But you and your neighbour have to work together on "collective Enfranchisement", you can't do it by yourself.)

Thanks 

It is just my flat and theirs in the building. There’s just the two flats. 

Yes - I understood that there are only 2 flats in the building. 

My answer was specifically based on there being 2 flats in the building.

Ok I just got confused about asking my neighbour because there are no other Neighbours in the property. The person selling the property also holds the freehold. They are the executor of the flat as the owner died. 

eddddy

mizzbonita said:

Ok I just got confused about asking my neighbour because there are no other Neighbours in the property. The person selling the property also holds the freehold. They are the executor of the flat as the owner died. 

OK - it sounds like you have an unusual setup. You probably need to provide more information.

So far, we've established that...

• There is a freehold building
• You own a leasehold flat in that building
• There's a second flat in the building (which may or may not be leasehold - you haven't mentioned that yet)

• The freehold building including the second flat were owned by the same person - perhaps under a single freehold title, or perhaps under 2 titles (a freehold and a leasehold).

• That owner has died, and an executor is selling 'something' or 'somethings'.

So what is it that the executor is currently offering for sale? For example, is it:

• 1 thing - A freehold building including the other flat - under a single freehold title

• 2 separate things - a) the other leasehold flat, b) a freehold building

• 2 separate things - a) the other leasehold flat with a share of the building freehold, b) a share of the building freehold to you

Has the executor approached you, and offered to sell you something? If so what?

And finally, why are you considering buying the freehold (or share of freehold)? What benefits are you hoping for?

mizzbonita

Thanks for taking your time to help me with this. 

Ok so the flat is empty and being sold along with the freehold. It’s a leasehold flat plus the freehold. 

I was intending on purchasing both as a buy to let but with my current circumstances that’s not going to be possible. As they will be selling both the leasehold flat and freehold, I wanted to look into whether I could purchase a share of it or all of it and if it would even be beneficial. 

To be honest Im not sure what benefits it would bring having had a read online especially since I will be most likely selling my flat within the next year. 

My main concern is if the freehold and is sold to someone else, could they potentially start charging ground rent? Mine was peppercorned when I had my lease extended a few years ago. 

mizzbonita

eddddy said:

mizzbonita said:

Ok I just got confused about asking my neighbour because there are no other Neighbours in the property. The person selling the property also holds the freehold. They are the executor of the flat as the owner died. 

OK - it sounds like you have an unusual setup. You probably need to provide more information.

So far, we've established that...

• There is a freehold building
• You own a leasehold flat in that building
• There's a second flat in the building (which may or may not be leasehold - you haven't mentioned that yet)

• The freehold building including the second flat were owned by the same person - perhaps under a single freehold title, or perhaps under 2 titles (a freehold and a leasehold).

• That owner has died, and an executor is selling 'something' or 'somethings'.

So what is it that the executor is currently offering for sale? For example, is it:

• 1 thing - A freehold building including the other flat - under a single freehold title

• 2 separate things - a) the other leasehold flat, b) a freehold building

• 2 separate things - a) the other leasehold flat with a share of the building freehold, b) a share of the building freehold to you

Has the executor approached you, and offered to sell you something? If so what?

And finally, why are you considering buying the freehold (or share of freehold)? What benefits are you hoping for?

 I didn’t reply to your post when I responded above so I’m not sure if you got a notification so I’m just doing it now just in case. 

DullGreyGuy

mizzbonita said:

eddddy said:

mizzbonita said:

Ok I just got confused about asking my neighbour because there are no other Neighbours in the property. The person selling the property also holds the freehold. They are the executor of the flat as the owner died. 

OK - it sounds like you have an unusual setup. You probably need to provide more information.

So far, we've established that...

• There is a freehold building
• You own a leasehold flat in that building
• There's a second flat in the building (which may or may not be leasehold - you haven't mentioned that yet)

• The freehold building including the second flat were owned by the same person - perhaps under a single freehold title, or perhaps under 2 titles (a freehold and a leasehold).

• That owner has died, and an executor is selling 'something' or 'somethings'.

So what is it that the executor is currently offering for sale? For example, is it:

• 1 thing - A freehold building including the other flat - under a single freehold title

• 2 separate things - a) the other leasehold flat, b) a freehold building

• 2 separate things - a) the other leasehold flat with a share of the building freehold, b) a share of the building freehold to you

Has the executor approached you, and offered to sell you something? If so what?

And finally, why are you considering buying the freehold (or share of freehold)? What benefits are you hoping for?

 I didn’t reply to your post when I responded above so I’m not sure if you got a notification so I’m just doing it now just in case. 

You don't get a notification of a reply to one of your posts as standard (unless you are the OP), to ensure they get notified include their username with the @ symbol before it @mizzbonita

Jonboy_1984

To  answer your main concern, any buyer of the freehold cannot unilaterally amend your current lease, so cannot start to change the ground rent etc. 

If the block is in good order I personally would prioritise getting out whilst the going is good.

If the block is in poor order or the late freeholder was not keeping up with any of their legal obligations, particularly any recent legislation such as fire safety, you may find higher service charges if the new owner tries to catch up with any existing backlog.

mizzbonita

Jonboy_1984 said:

To  answer your main concern, any buyer of the freehold cannot unilaterally amend your current lease, so cannot start to change the ground rent etc. 

If the block is in good order I personally would prioritise getting out whilst the going is good.

If the block is in poor order or the late freeholder was not keeping up with any of their legal obligations, particularly any recent legislation such as fire safety, you may find higher service charges if the new owner tries to catch up with any existing backlog.

Ok that’s good to know. There are also no service charges that I pay. 

The building is actually in good order and the freeholder was pretty good when it came to any issues with repairs needed. 

Would you say it’s not worth pursuing a share of the freehold then?