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

          Latest Activity

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          • Small claim online
            by Anna1985
            I have finally submitted the claim online and it is now nearing 14 days since the claim paperwork was delivered and the leaseholder doesn't pick up the post.

            Please note the leaseholder doesn't live in the address and didn't provide FHs or our solicitor with his current address.
            ...
            27-02-2021, 11:39 AM
          • Reply to Small claim online
            by Section20z
            My understanding is that a court judgement is acceptable prerequisite for s146 and I have used this many times. It's not your job to trace someone who is avoiding their obligations, he can contact you if he wants to build a relationship....
            27-02-2021, 17:52 PM
          • Reply to Small claim online
            by eagle2
            What is the point of playing games, if you know his address, just send correspondence to him. You should be trying to bridge the differences, instead you are fuelling the fire which will only cause further problems in future.
            27-02-2021, 15:02 PM
          • Reply to Small claim online
            by Anna1985
            Section20z , I'm under impression that I need a breach to be confirmed by court ie application for section 168.

            Once I have it then, section 146 notice
            27-02-2021, 14:55 PM
          • Reply to Small claim online
            by Anna1985
            eagle2 , there is no relationship to damage - the LL doesn't want to do any maintenance as he doesn't live in the property.
            both FFS live in the property. We want property to be maintained well.

            So there is a problem and it would be only be resolved when LLS will get an understanding...
            27-02-2021, 14:46 PM
          • Reply to Small claim online
            by eagle2
            You can use a tracing agent if you wish to make contact with the leaseholder. Issuing forfeiture proceedings will only damage the relationship.
            27-02-2021, 13:53 PM
          • Reply to Small claim online
            by Section20z
            Easy enough, just log in online and apply for default judgement once response time has elapsed. After another few days they will issue judgement, you just send it on to Northern Rock.
            Personally I would issue s146 alongside (plenty of sample forms online) and charge another £150 to cover the...
            27-02-2021, 13:36 PM
          • Reply to Small claim online
            by Neelix
            can't you track him down on social media?
            27-02-2021, 13:16 PM
          • Reply to Small claim online
            by Anna1985
            eagle2 , I have a bundle of post not picked up for the last 6 months or more.
            so don't think the mortgage company will get a reply from the leaseholder.

            And if they do - well he would need to provide his current address.
            27-02-2021, 12:30 PM
          • Reply to Small claim online
            by Anna1985
            sgclacy , could I do it? It is for property maintenance, not ground rent - I'm under impression I should 1st apply to section 168? Or did I get it wrong?
            27-02-2021, 12:28 PM
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