As you are the lease holder, the legislation gives you rights to purchase the freehold of the property from the holder of the freehold. If you are not careful, you can end up with a property with a valuation far more than what it was worth when tied to a lease with only a few years left to run. You will have to pay a tidy sum to the freeholder of the property in order to get a leasehold enfranchisement. The lease enfranchisement process is an intricate process and so it requires professionals in the field to accomplish success. The process involves many negotiations and discussions.
If you want to close a leasehold enfranchisement satisfactorily, request the service of both a leasehold enfranchisement solicitor and a surveyor who are experienced in the field of leasehold enfranchisement. If you do not have both types of expertise, do not try it on your own.
Basic requirements that need to be fulfilled for a leasehold enfranchisement to be concluded satisfactorily are that:
The building should have at least 2 flats, and the original lease should be left with at least 21 years remaining. Minimum of 50% of the leaseholders should take part in the leasehold enfranchisement.
If the total number of flats is less than 5, and the freeholder is living in the building that he converted into flats, then it will not be possible to carry on the leasehold enfranchisement.
It is not necessary that a leaseholder be a resident of the property. First all the leaseholders have to form a 'right to enfranchise' company. Then the solicitor will serve notice on the freeholder making an offer for the purchase of the freehold. The freeholder will either accept the offer or if he is not satisfied then he will be asked what price he wants. The negotiations will carry on from here until a mutually satisfying price is reached.
The landlord is entitled to compensation for the loss he will experience on granting of the enfranchisement. This compensation is essentially the premium that you as the leaseholder will pay.
· Value reduction in the part of the landlord's interest in the flat; that is, the difference between the value of his interest now with the present lease and the value of his interest after the enfranchisement.
On behalf of Surveyors London