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  • Buy-to-Let

    Buying the freehold

    I'm considering buying a flat in a block of 12 which has 84 years left on the lease.

    The freeholders are quite aggressive on the service charges and also the ground rent which is tied to the RPI.

    I've put an offer in on the flat which has been accepted, with a view to buying the freehold in a couple of years under the collective enfranchisement legislation.

    I would be interested to hear of any members experiences of buying the freehold and what pitfalls I'm likely to encounter.

    Thanks.

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    Buying the freehold can be a minefield- we would never buy a lease hold flat in future unless we could get the fh too. Having to rely on a majority of leaseholders to act collectively can be impossible. I wouldn't touch it.

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    Well - you would need the majority of the other leaseholders to get involved. To have to cash to invest and in theory split the cost is split 12 ways.
    Though perhaps 4 dont want to participate in buying the freehold, the remaining will have to pay there share.

    It's not an easy process. I did the "easier" one being "Right to Manage" and the freeholder fought us at every step, on every technicality.

    So I wish you the best of luck. It may be a bit of a gamble to purchase with the idea of buying the Freehold under Enfranchisement.
    Though there are murmurings about parliament about making it easier in the future, with several proposals being put forward.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________

    I am organising this in a block of 14 flats where most of the leases are 63 years. 

    You have to get at least 50% on board. Our problem is that 3 flats that have already extended don’t want to participate, they don’t see the value, so their share of professional fees will have to be shared by the participants, their premium will be next to nothing so that’s not an issue.

    The non-participating short lease freeholds will be sold to investors ( they are a good little earner when the lease is that short).

    It’s well worth doing. 


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