Forum Home» House Buying, Renting & Selling

Buy Your Freehold - guide discussion - Page 2

New Post Advanced Search

Buy Your Freehold - guide discussion

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
192 replies 50.6K views
2456720

Replies

  • retro1981retro1981 Forumite
    34 posts
    Tenth Anniversary 10 Posts Combo Breaker Home Insurance Hacker!
    Hi,

    Does anyone know where I stand on this and if I can buy freehold, since it is a council and not a private agency? I bought my apartment in 2004, with a 100 year leasehold. The previous owner bought the apartment at a reduced rate after being a Housing Executive tennant.

    It is part of a block of 6, I pay the Housing Executive approx 80p per week for maintenance, service charges & buildings insurance, and £10 ground rent per year.

    Thanks!
  • propertymanpropertyman Forumite
    2.9K posts
    ✭✭✭✭
    podski111 wrote: »
    When i moved into my leasehold flat the freeholders lived in Australia...................................Sorry if I am being a bit question heavy!!

    If there are sufficient leaseholders that would qualify for the right to first refusal ( ie offend to sell to residents before another) then under the Landlord and Tenant Act 1987 that majesty can compel the current owners to declare what happened. You can then exercise your rights to compel a sale.

    http://www.legislation.gov.uk/ukpga/1987/31/section/11A

    You could also consider exercising the right to manage and remove the agent and run it yourself. You then only deal with them on freehold matters on which valuation advice,and time, would be required.

    This is an idea if only a few of you wish/can afford to purchase the freehold, ensuring that everyone is involved in managing under RTM, by encouraging them to support the minority group in buying the freehold by ensuring they are on equal footing for service charge expenditure and management.
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn
  • propertymanpropertyman Forumite
    2.9K posts
    ✭✭✭✭
    retro1981 wrote: »
    Hi,

    Does anyone know where I stand on this and if I can buy freehold, since it is a council and not a private agency?

    Thanks!

    This NI government advice site may help

    http://www.housingadviceni.org/rights-when-renting/leaseholders-rights/overview-of-leasehold-law.html
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn
  • SKPatelSKPatel Forumite
    63 posts
    Thank you, Sajel, for taking the trouble to advise me.
    Can you advise on how I would check my neighbour's lease? Would I have to contact her (she lets out her flat) and ask to see it?
    Sure, you should be able to obtain a copy of the Lease from the Land Registry website for a small fee.
    Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.
  • Hi all very informative thread. Just thought it might be a bit relevant due to the nature of the thread to write a post about commercial property lease.
    Anyway i was wondering if there is anyway legally i can purchase the freehold of a commercial property that i am the leaseholder of. I have took out 21 year lease??
    Having written to the Landlord regarding freehold purchase he has refused.
    Would really like to buy the freehold but not sure if i have any rights as to freehold as it is commercial property.
    Any help or advice PLS
    :)
  • edited 13 April 2012 at 5:03PM
    anniewananniewan Forumite
    1 posts
    edited 13 April 2012 at 5:03PM
    Hi everyone. I was interested in buying a freehold 1st floor flat. Below is a leasehold flat. This person pays maintenance to the freeholder. I have tried various mortgage brokers and they all will not give a mortgage on a freehold flat. Yet this site is encouraging people to change from leasehold to freehold. Can anyone explain please?
  • Hi there

    I have a top floor leasehold flat in a converted house (two flats) and I want to buy the freehold, is it true that I need both owners to buy the freehold?

    The owner of the ground floor flat does not live there and has people renting. I have no way of contacting the owner as the couple renting will not pass on the details of the owner. Can I just go ahead and purchase the freehold?

    Thanks

    Pete
  • SKPatelSKPatel Forumite
    63 posts
    peteshev wrote: »
    Hi there

    I have a top floor leasehold flat in a converted house (two flats) and I want to buy the freehold, is it true that I need both owners to buy the freehold?

    The owner of the ground floor flat does not live there and has people renting. I have no way of contacting the owner as the couple renting will not pass on the details of the owner. Can I just go ahead and purchase the freehold?

    Thanks

    Pete
    Unfortunately, both you and your neighbour will need to participate in order to buy the freehold.

    A way around this would be to ask the landlord to serve formal notices on both of you with a view to selling the freehold. If your neighbour has not replied within the time frame given, the landlord can proceed to sell to you alone. However, this scenario assumes that the landlord wants to sell the freehold.
    Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.
  • propertymanpropertyman Forumite
    2.9K posts
    ✭✭✭✭
    SKPatel wrote: »
    Unfortunately, both you and your neighbour will need to participate in order to buy the freehold. .

    That's not entirely correct I am afraid.

    As there two qualifying leaseholders the landlord must offer the freehold to all leaseholders-aka right to first refusal.

    If you cannot agree to purchase the freehold within the time frame, then the freeholder may sell it to you, this is not as suggested a work around, as it is exactly how the Act ( the law) intended for things to be.

    More commonly where a majority want to remove the freehold from the freeholder but lack the ability or will to do so themselves, they can nominate a purchaser. In this case you and the other flat exercise the right to buy and you are nominated as the nominated purchaser.

    If the freehold is owed by a company and the freehold is the sole asset ( and there are no liabilities) you can purchase the company without triggering the right to first refusal.
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn
  • SKPatelSKPatel Forumite
    63 posts
    That's not entirely correct I am afraid.

    As there two qualifying leaseholders the landlord must offer the freehold to all leaseholders-aka right to first refusal.

    If you cannot agree to purchase the freehold within the time frame, then the freeholder may sell it to you, this is not as suggested a work around, as it is exactly how the Act ( the law) intended for things to be.

    More commonly where a majority want to remove the freehold from the freeholder but lack the ability or will to do so themselves, they can nominate a purchaser. In this case you and the other flat exercise the right to buy and you are nominated as the nominated purchaser.

    If the freehold is owed by a company and the freehold is the sole asset ( and there are no liabilities) you can purchase the company without triggering the right to first refusal.
    I don't believe i am incorrect.

    The 1993 Act allows for qualifying tenants to serve a Section 13 Notice on the freeholder to acquire the freehold. However, where there are only two flats in a block, both need to participate.

    I agree with your comments regarding the right of first refusal, however this applies where the freeholder wants to sell the freehold. What happens if s/he doesn't?

    Before considering the option to purchase the company that owns the freehold, you will need to consider what counts as a 'disposal' under the relevant legislation to make sure this in itself does not trigger the right of first refusal.

    May i suggest that Pete approaches his landlord and find out if he is interested in selling the freehold. This will then help him decide which route to take.
    Specialist in Lease Extensions and Freehold Acquisitions. Posts do not constitute advice.
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support