Buying the Freehold
buying-the-freehold

Buying the Freehold

If you are a leaseholder of a flat in England or Wales then you might have the right to buy the freehold interest of your property. Customers pay upwards of six figure sums for flats when is many cases, someone else owns the land on which their dream home is built on. Leaseholders therefore in many cases folk out £10,000s to extend leases and pay even more on service charges.

Though what you might not know is that at least in England and Wales, powerful laws mean that leaseholders can force the freeholder to sell and part with the freehold or even perhaps can just take over their building management. This can only be done by buying the freehold.

The process known as collective enfranchisement, gives the leaseholders to group together to buy the freehold for a fair market price. This quite underused yet sometimes lucrative right was brought about in 1993 and then was given a further boost by the Commonhold and Leasehold Reform Act 2002.
The process of buying the freehold is not as straight forward as a typical conveyancing transaction, however with someone such as Express Conveyancing to guide you through the legal minefield, the transaction can certainly be a lot smoother.

Lease Extensions Vs Buying the Freehold,

Most lenders require at least 70 years remaining on the leases if they are to lend against the property. What this mean is that potentially when it comes to you selling the property and you are buyers are purchasing with the use of a mortgage, then you will be requires to extend the lease(lease extensions) prior to selling. The main reason for this is the fact that by law, you should have legally owned the lease for a minimum of 2 years before enfranchisement can be carried out. Freeholders can therefore charge potentially 10,000s to consent to extend the lease. Further leaseholders must pay ground rent (usually small) and service charge (which in many cases run into the thousands).

What you do need to bear in mid however is that a flat with a share of the freehold differs from a freehold house. Flat owners with a share, shares this with the other freeholders jointly.

What our clients say

Great value for money. Everything went smoothly and I was very pleased with the service provided
Rachel Whitfield
Rachel Whitfield
20:59 12 Oct 18
Excellent! Very responsive, and really helped to push the purchase. There were unexpected delays during the process, but Anthony really helped to reassure me that he was doing everything he could to progress the sale. Ultimately, it all worked out in the end, and I would highly recommend! I would also recommend for auction purposes.
Sean Stevens
Sean Stevens
09:14 21 May 18
Very happy customer. Understanding of our needs and recommended a really fantastic solicitor.
Jack Hearne
Jack Hearne
17:49 12 Oct 18
I have just completed the purchase of my flat with them. They were recommend by the estates agents Phillip Arnold and they were fantastic. My case was handled by Milena who was really helpful and always available on the phone. The online system is also really easy to use. If I buy or sell a property I will definitely be using them again.
Sharon Kelly
Sharon Kelly
18:27 20 Dec 17
I used this service following a recommendation. The online case tracker worked really well. I would recommend this service as it's vital in the coordination between Estate Agencies and between Solicitors. The service proved invaluable in helping progress the conveyancing work efficiently and effectively. Completed the transaction just before Christmas having instructed the Solicitors on the 4th.
Shelly Harrill
Shelly Harrill
16:30 19 Dec 17
Excellent Service. Final Price same as quoted.
A Google User
A Google User
14:26 19 Dec 18
Have used them twice. Both times completion happened in less than 4 weeks, even over Xmas! Totally amazing. They take the stress out of the whole process.
Daniel West
Daniel West
13:04 21 Dec 18
Excellent Service. Final Price same as quoted
Parsa Khamooshi
Parsa Khamooshi
15:54 21 Dec 18
Being a first time buyer they guided me smoothly through the whole process of moving into my first home. Very professional and economical.
Uday Seth
Uday Seth
12:31 24 Dec 18

Our News