What is this?
Under the Leasehold Reform, Housing and Urban Development Act 1993, the Leaseholders in a block of flats can compel the Freeholder to sell them the Freehold collectively.  Most Leaseholders do this so they can have tighter control over the management and maintenance of their block, and are able to extend their own individual leases as they wish.

What is the Right of First Refusal?
This is the situation where the Freeholder intends to sell the freehold to a third party. He has an obligation under the Landlord and Tenant Act 1987 to offer you the freehold first.  If you receive formal notification that this is his intention, we can advise the Leaseholders on the best way to proceed.

Are we eligible to purchase the freehold?
There are several legal requirements which must be met before you qualify to purchase the freehold of a block of flats. These will be explained to you when you get in touch with us.

How much will it cost us?
This is rather complicated! The Landlord is entitled by law to be compensated for the following:

• Loss of the ground rent income he would have received to the end of the existing leases (the term value).
• The value of the freehold (including the flats) when the leases expire (the reversionary value).
• His share of the marriage value (see Glossary).
• The value of other interests, e.g. garages, Rent Act tenancies and compensation for other losses.
  

Calculating the level of compensation is an imprecise science, and very complicated. This is the reason you need to employ a specialist valuer.  Instructing Nick Plotnek Associates will ensure you pay a fair price and will be guided through the process to a successful conclusion.

Other than the price we have to pay to the Landlord, are there any costs?
Once you commit to the Collective Enfranchisement process you become responsible for the freeholder's “reasonable" costs.

These are limited to professional fees such as legal costs and valuer’s fees.

You will not have to pay his costs of going to a Leasehold Valuation Tribunal, should the matter not be agreed beforehand.
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Do we have to go through the Act to buy the Freehold?
No, you can always negotiate informally with your Landlord to buy your freehold.  However if you cannot agree on terms you cannot go to the Leasehold Valuation Tribunal if you haven’t applied to buy your freehold under the Act.

How long will the process take?
This really depends on how difficult your Landlord is to deal with, but from experience we would allow somewhere between eight and fourteen months.

How do I start the process?
By visiting our web site you have made the first, most important step. Nick Plotnek Associates will take the next step and ensure that the process continues to run smoothly for you. We will carry out a valuation of the freehold in accordance with the legislation, and will provide you with a range of figures (the best and worst case scenarios) that would likely be determined were the matter to go before the local Leasehold Valuation Tribunal.

If you decide to proceed with the Freehold purchase we will arrange for the statutory procedures to be started, and then continue the negotiation process. If necessary, we will represent you at the Tribunal should the parties fail to reach an agreement.

Please contact us for further information or Call us now on 0121 427 2800