One of the most important things which you need to pay attention to when going ahead with buying the freehold of your block is the costs. Freehold purchase, [which is also sometimes known as freehold, collective or leasehold enfranchisement] and every process varies according to the length of time it takes to conclude and the type of property involved.
Getting an accurate valuation is crucial when buying your freehold
One set of costs which you really shouldn’t try to avoid when going through the process of freehold enfranchisement relate to the valuation fees charged by a chartered surveyor with plenty of freehold purchase experience. It’s the surveyor’s job to agree the valuation for the freehold, so it’s very important to work with a surveyor who specialises in the enfranchisement field.
There aren’t many surveyors who do this sort of valuation work regularly – however, if you instruct our team as your solicitors, we are more than happy to not only recommend one of a network we have developed of specialist local surveyors, with whom we have worked with successfully on similar cases in the past, but we are also happy to instruct them, if you wish, on your behalf.
Additional costs involved in freehold purchase
In addition to surveyor costs, solicitor’s fees will also have to be paid. Just like appointing the right surveyor, it is essential to find a specialist solicitor. Remember that even solicitors who specialise in property law or conveyancing deal will have dealt with enfranchisement before. Unless you live in a town with a large number of leasehold flats, such as Brighton, London or Bournemouth, you are likely to have to look outside your local area to find a specialist solicitor and communicate online or by telephone rather than face to face.
That’s where we come in. Lease extension and enfranchisement are all our specialist team does – and every year we act for hundreds of freeholders and leaseholders throughout England and Wales.
What will my solicitor do?
Your solicitor’s legal fees will include the costs associated with serving notice on the freeholder of the property, establishing a new freehold management company, costs incurred when transferring the freehold to the new company and drawing up the new leases. If the landlord or freeholder is uncooperative, and the case ends up being decided by the Leasehold Valuation Tribunal, this will also incur additional legal costs.
An agreement will also have to be drawn up which states the contribution of each of the tenants involved in the enfranchisement process, including the new leases which are issued.
In addition to your own solicitors costs, exercising the right to buy the freehold of your block means that you will also have to pay the “reasonable” legal costs of your freeholder aid, and these costs include their solicitor’s fees, the cost of conveyancing and the cost of having a valuation produced by their own valuer.
Setting Up A New Freehold Company
If a new company is set up to manage the freehold of the block, then in most cases a company of managing agents are employed to run the building on behalf of the tenants – though depending on the size of your block and the enthusiasm of you and the others taking part in the enfranchisement process, you may wish to take on this role yourselves. If not then the associated with ongoing payments to a management company have to be factored into the overall costs when it comes to thinking about freehold acquisition.
Considering Buying your Freehold? Contact us today
Freehold Purchase is a complex business and you are going to need specialist legal advice. Whether your block is based in England and Wales, our expert team is here to help.
Get in touch with us now for a FREE first phone consultation on your Freehold Purchase;
- Call our specialist enfranchisement team today on FREEPHONE 0800 1404544
- Or email us using the contact form below
Comments or questions are welcome.