If you own a leasehold property, you have the legal right to purchase the freehold if you fulfil certain criteria.
With increasing ground rents and high service charges becoming more common in the leasehold market, some might argue that leasehold properties are designed to maximise profits at the expense of the owners.
However, if you already own a leasehold house, you do not have to pay these costs forever.
At Bird & Co, our expert freehold purchase solicitors in London can help you buy the freehold of your house.
Purchasing a freehold often involves skilled negotiations, our lawyers have many years of experience guiding clients through the process to ultimately achieve a positive outcome.
To get in touch with a member of our freehold purchase team covering London, give us a call or you can get a quote online. .
How our freehold purchase solicitors can help people in London
Purchasing a freehold
Purchasing a freehold means you acquire ownership of both the property and the land it stands on.
Buying a freehold gives homeowners greater control over their property. It removes the costs of ground rent and allows the owner to make their own property management decisions.
The process typically applies to leasehold houses and can involve negotiation, valuation, and legal proceedings.
Purchasing a freehold allows property owners to fully enjoy the benefits of homeownership without ongoing leasehold obligations.
Collective purchase of a freehold (where a number of tenants wish to take over a freehold as a group)
The collective purchase of a freehold involves a group of tenants coming together to acquire the freehold from a management company or landlord.
This process, known as collective enfranchisement, empowers tenants to collectively take control of the freehold, enabling them to manage the property themselves.
If you meet the eligibility criteria for collective enfranchisement, the process requires a collaborative effort, ensuring everyone follows the relevant legal procedures.
This approach allows tenants, especially in leasehold flats, to participate in decision-making, remove ground rent concerns, and manage their own property. It is a communal strategy for shared property ownership.
Your right of first refusal to buy the freehold of a property
The Right of First Refusal grants leaseholders the initial opportunity to purchase the freehold of their property before the landlord considers external offers.
This right, governed by the Landlord and Tenant Act 1987, aims to provide leaseholders with greater control over their property's ownership.
When the landlord intends to sell the freehold, they must first offer it to the qualifying leaseholders at a price and terms matching those offered by an external buyer.
Leaseholders can collectively exercise this right, promoting cooperative ownership and preventing changes in property management.
Our freehold purchase solicitor’s fees
Our fees are transparent and, so long as the situation does not change, the fee we quote is the fee you will be charged.
We don't add extras for things like photocopying, postage, or the like. Those are our overheads and we don't pass them on to you.
All our fees are dependent on the nature and value of the transaction, so we naturally charge a bit more for more complicated and high-value work.
However, the fee charged will be the same for a customer in Newcastle as it would be for someone in London.
Freehold purchase FAQs
What does buying a freehold mean when purchasing a house or property?
Purchasing a property as freehold means acquiring full ownership of both the building and the land it stands on.
Unlike a leasehold, where ownership is limited by a lease agreement, a freehold grants the buyer absolute ownership without time constraints.
As a freeholder, you have greater autonomy over the property, including decision-making authority on issues like alterations and renovations.
This form of ownership is generally preferred for houses as it provides a greater sense of security and independence.
What is the cost of buying a freehold?
The cost of buying a freehold is influenced by several factors including property value, location, and negotiations with the existing freeholder.
Typically, it involves purchasing the freehold interest from the existing freeholder. Beyond the purchase price, additional costs may include legal fees, surveyor fees, and potential premiums related to the property's value.
It's advisable to seek professional advice to assess the total expenses and understand the implications of the transaction.
Do all leaseholders have to agree to buy a freehold?
No, not all leaseholders need to agree to buy a freehold. To proceed with collective enfranchisement, a minimum participation level of qualifying leaseholders (usually at least 50%) is required.
The process involves serving a formal notice to the landlord, who can then either agree or contest the sale.
While the decision doesn’t have to be unanimous, the majority of leaseholders must consent in order to collectively purchase a freehold.
Professional legal advice is recommended to navigate the complexities of the process and ensure compliance with legal requirements.
What are the benefits of buying a freehold?
Buying the freehold of a house has several benefits. Owners gain greater control over their property, removing ground rent and service charges. It provides a sense of security and increases property value.
Homeowners can make decisions about property management, alterations, and extensions without seeking landlord approval. The freeholder has more influence over property maintenance, ensuring it aligns with their preferences.
Owning a freehold also simplifies the resale process, making the property more attractive to potential buyers.
How do you purchase the freehold of a house?
Under the Leasehold Reform Act 1967, most owners of leasehold houses in England and Wales have the right to purchase the freehold title to their lease, essentially acquiring their landlord’s interest outright. This process is referred to as "leasehold enfranchisement."
Qualifying criteria:
- The property must be a house.
- The lease must be a long lease, of over 21 years.
- The tenant must be the registered leaseholder for a minimum of 2 years.
To acquire the freehold, the enfranchisement process typically involves:
- Checking eligibility for a leasehold enfranchisement claim.
- Providing detailed valuer instructions.
- Preparing and serving the Section 5 Notice of Claim.
- Addressing the freeholder's counterclaim.
- Assisting in price negotiations.
- Managing the transfer deed terms and covenants.
- Completing registration at the Land Registry.
Our solicitors specialising in freehold purchases possess the expertise to guide you through each step, ensuring a smooth and efficient residential freehold purchase while safeguarding your interests.
How long does the process take?
The time it takes to purchase the freehold of a house varies based on factors such as negotiations and potential disputes.
Generally, the process takes several months, with an average timeframe of 3 to 12 months.
Delays may occur during negotiations, the valuation, and if disputes arise between leaseholders and freeholders.
Engaging expert solicitors can streamline the process, mitigating any potential risks and ensuring the process is completed in a timely and efficient manner.
Get in touch with our freehold purchase solicitors for London
Get in touch with our freehold purchase solicitors covering London by give us a call or you can get a quote online. ..