UK Collective Enfranchisement – What About Paying Landlord Costs?

When going through the process of freehold or collective enfranchisement as part of the costs of the general freehold purchase of your block of flats, the Nominee Purchaser [i.e. the company which has been set up to buy the freehold] is liable for the reasonable costs of both the freeholder and any intermediate landlord. Payment must be made freeholder and any intermediate landlord of any costs incurred in:

(a) undertaking an investigation and verifying title;

(b) providing information required by the Nominee Purchaser;

(c) valuation of the premises; and

(d) conveyance of the freehold to the Nominee Purchaser

The Nominee Purchaser is not liable for the landlord’s costs of negotiation of the valuation, nor is the Nominee Purchaser liable for the landlord’s costs of Leasehold Valuation Tribunal proceedings.

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