Freeholders are barred by legislation from unreasonably withholding or delaying consent, but this is perhaps not legislation that many sellers will wish to rely on, as to do so would involve an application to court, which would naturally delay their sale by months.
Can a block of flats be freehold?
FAQs – Buying the freehold of flats with other tenants (collective enfranchisement) Since 1993, tenants of blocks of flats have the right to collectively acquire the freehold of their building.
Can I force the freeholder to sell me the freehold?
Yes – with enfranchisement, leaseholders can force freeholders to sell their freehold interest. RFR is an opportunity for those leaseholders to buy that interest before the freeholder offers it to a third party.
How do I extend my lease with share of freehold?
If you are lucky enough to own a flat and a share of the freehold the good news is that the process of extending is relatively straightforward and the costs are fixed (and low). The first step is to agree this with the co-owners. You cannot usually act alone however extending the lease will benefit everyone.
Whether you own a flat or a house, you may be entitled to force your landlord to sell the freehold title to you. Owning the Freehold means you extend your lease without the payment of a premium and in addition make your own decisions concerning the management and the maintenance of the block.
How to extend your lease if you own a share of the freehold?
Can a share of freehold be extended to 125 years?
The Laing leases in particular tended to be granted for 125 years initially and so now need extending. You can extend these as you would a share of freehold but obviously in this instance the upper and lowers owner must work together to extend each others leases at the same time.
Can a leaseholder force a freeholder to sell?
Leaseholders who collectively own more than half the flats in a building can force a freeholder to sell. A company is set up to acquire the freehold and each flat owner receives a company share in exchange. If the leases are not extended to 999 years from the outset, there could be a substantial corporation tax liability on extension of leases.
Can a flat be sold with a share of the freehold?
The phrase ‘with share of freehold’ does not therefore necessarily give an advantage to the buyer of a flat. It is imperative to ensure that in selling a flat with a share of the freehold, the implications of owning the freehold and its challenges are understood.
