Buying your freehold?
Right of First Refusal and Collective Enfranchisement
Many developers of new build flats quickly sell off their freehold interest in the block(s) to property investment companies.
These investment companies then impose their own managing agents and/or block buildings insurance policies on the leaseholders. This arrangement usually means greater cost for the flat owners.
Did you know that in these circumstances the developer is require by law to first offer the freehold to the flat owners? If he sells the freehold without first offering it to the flat owners, the new freeholder can be forced to reveal the price paid, and even forced to sell it back to the flat owners at that price.
This entitlement is called the Right of First Refusal. Contact us for more details – we can help you to ensure your freeholder does not ignore your rights.
Even if your freeholder has acted correctly, you can still force them to sell the freehold to you, via a process called Collective Enfranchisement.
As long as your building qualifies (most residential blocks do), the process allows flat owners to serve notice on the freeholder, stating their intention to purchase the freehold.
Once the freeholder accepts the flat owners’ entitlement, and the price to be paid is agreed the transaction can proceed. If no agreement can be reached the matter can be referred to an independent tribunal for a decision.
Contact us for more details on how to progress an application. We have the expertise and experience to guide you smoothly through what can be a daunting process.