Selling your flat during the lease enfranchisement process
This is possible – however, if you have already signed an enfranchisement participation agreement, your share of the cost of purchase will have to be paid by the buyer of your flat. In theory, it should be quite attractive to a potential buyer to be able to buy a share of the freehold.
Can flat-owners later buy a share of the freehold?
Once the freehold company has been set up, those flat owners who were not involved in the lease enfranchisement will not simply be able to choose to buy a share of the freehold. In effect, they simply become tenants under the new company. However, it is often deemed to be in the interests of other freeholders to let new owners buy a share.
Extending your lease as a freeholder
Many people wrongly believe that owning part of the freehold means that they will not need to extend the lease on the flat they own. This is not the case however lease extension will only require the payment of legal fees and should therefore be straightforward.
It is always advisable to extend a lease for the longest term possible, which is 999 years, at the earliest opportunity. The other freeholders will need to sign the documentation and they can technically charge a fee for this. However, this is not really in their interests because you could then charge them should they require an extension.
Extending your lease whilst in the process of buying the freehold
Once the leasehold enfranchisement process has started, no residents will be able to extend their leases until the process is complete. The extension can then be purchased from the resulting company.
Lease enfranchisement – Unable to find the freeholder?
It may be the case that you cannot extend your freehold because the freeholder has moved abroad, died or simply cannot be found. If this is the case, an application should be made to the court for a ‘vesting order’.
Call our Lease Enfranchisement Solicitors for expert advice
Expert legal advice on lease enfranchisement is difficult to come by but the experts at our firm have the skills and experience required to help you with your freehold purchase.
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