TYPICAL QUESTIONS ASKED BY FLAT OWNERS CONSIDERING BUYING THEIR FREEHOLD.
Q1. My landlord has served an offer notice under the 1987 Act. I think the price is too high. Do I have to pay this amount?
If the price is too high you can always offer less. Even if the freeholder rejects your offer he cannot sell the freehold within a period of 12 months for less than the amount. It is unlikely that anyone else will pay more than the interest is worth. If the Notice proposes to sell the freehold interest at auction we would usually recommend leaseholders secure the right to acquire their freehold at the auction price. The auction price is usually lower than the appropriate market price.
If you are served with a Section 5 Notice under the Landlord and Tenant Act 1987 you should contact a member of the Leasehold Services Team without delay.
Q2. I haven't heard from my landlord for several years. What can I do?
Your landlord / freeholder may be missing or, perhaps, died. In this situation we can assist you make an Application to the Court to acquire the freehold.
The freehold company may have been struck off or dissolved. If so, you may be able to buy the freehold from the Crown.
If you find yourself in this position and wish to acquire your freehold then you should contact a member of the Leasehold Services Team.
Q3. When we get the freehold will we all have freehold flats?
No. Your flats will still be leasehold and the leases will still apply. However, residents will be in control of managing the building. Any problems with the leases can usually be corrected and leases can be extended.
Q4. When we have the freehold, can we extend our leases and stop paying ground rent?
Yes. Longer leases can be granted but there are good reasons beyond the scope of this guidance why ground rent should not initially be waived, especially in blocks of more than a few flats.
Q5. Should we buy the freehold in the name of a company or in our own names?
It is usually best to buy the freehold in the name of a company. The main advantages are:-
(1) Once registered, the freehold deeds never need changing again.
(2) When a flat is sold the owner merely signs a simple form to transfer the share in the company. If you take the freehold in your personal names, each time a flat is sold the freehold has to be transferred to include the names of the new flat owners. This would involve getting a transfer signed by all the leaseholders (some of whom may not live at their flats and may be difficult to contact).
(3) It is easier to grant longer leases
For further information on how we can assist you, please contact Ian Mitchell on 020 7940 4055 or click here to email him directly.
