Buying the Freehold

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    Buying the Freehold

    Hello. Apologies if this is the wrong forum. I am utterly confused as to where to post this.
    I own a flat, which I rent out. I have owned it for almost a year.
    It's a top floor flat in a building with approx 4 other flats.
    I have a 125 year lease.

    I've been sent a letter today giving me first right of refusal for the purchase of the freehold which is to happen via auction. I have so many questions!

    a) I think at least 50% of us have to want the freehold to proceed right? I couldn't buy it on my own?
    b) how on earth do you know how much it costs?
    c) if I say yes and I forced to pay whatever it goes for at auction? Or is that the point where I get the first right of refusal?
    c) what happens if we don't buy it - can a new landlord come in and change all the fees that are charged etc?
    d) what happens if we do buy it ? Do I become responsible for all the communal areas and insurance for the whole building?
    e) what about the flats who don't want to buy it? do I become their landlord and charge them service rent?

    SO VERY CONFUSED ABOUT EVERYTHING!

    Thanks in advance for any help or any pointers in the right direction would be good. Naturally I know I'm going to have to speak to a solicitor but would love to get some idea on these things!

    Thanks very much
    Kelly


    #2
    There's lots of readily available info online and threads on this forum if you search but briefly:
    a.Yes. or you can buy it on your own at the auction if 50% don't reserve their rights.
    B. Nobody knows till final bid
    C. You just get the option to buy, you are not committed
    D. Yes, but you might form A company to jointly share it
    E. Yes

    Comment


      #3
      Thanks for replying, I appreciate the concise and informative answers!

      Comment


        #4
        Being the freeholder of a small block may not be for you, there's are guidelines and procedures you need to follow, for example when the ground rent or service charge is payable. The insurance of the building, what to do when of the flat's doesn't pay. Annual accounts, the list is endless based on your obligations you need to do.

        Also you would not be able to buy the freehold if your the leaseholder named on your flat, you would need to form a company and buy it through that, as for example if you owed ground rent and decided you wont pay it, you can't sue yourself for it.

        Comment


          #5
          I recommend that you download the free guide to RFR at the LEASE website www.lease-advice,org . This guide will explain the legal situation and how to respond .

          To check the number of properties in your block, you can go online to Land Registry website and pay £3 to download each property title for your post code address. You probably need a majority of flats in the building ( 3 out of 5 flats ? ) to respond .

          Comment

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