Collectively buying the Freehold of your block has been a legal right to qualifying leaseholders since 1993. Subject to certain qualifying criteria and conditions, lessees have a right to collectively buy the freehold from the current owner or landlord. In order to qualify for this right, the majority of leaseholders must commit to and complete the purchase within a stipulated time frame. Other criteria and qualifications apply.In some cases this solution is an attractive option for existing leaseholders who might otherwise be considering the alternative route of Right to Manage. A new freehold company can be set up by the participating leaseholders. This company will then purchase the freehold title from the existing developer or landlord. In many cases the burden of future ground rent payments will be removed however this benefit will normally be reflected in the freehold purchase value. The existing landlord loses all rights once the sale is completed giving the new freehold company the ability to exercise its management function freely within the terms of the lease.
Throughout the purchase we are able to help clarify requirements by assisting and advising leaseholders wishing to consider this option. By co-ordinating efforts between leaseholders and their solicitors we can provide support and guidance through the somewhat complex legal procedures involved.