Articles

1. Introduction
2. Starting Out
3. Choosing Your Advisors
4. Valuation
5. Negotiation of a claim to Buy Your Freehold or Enfranchisement and Costs
6. Your Questions

Starting Out

Starting out

 If you can apply to buy your freehold, i.e. enfranchise, as with extending your lease, the most crucial time is before your leases drop below 80 years as at that point, the level of premium paid for the freehold increases and you share any profit with the landlord.

In order to start the process you should consider the following before consulting either a solicitor or surveyor.

1.             How many flats are there?

2.             How many tenants wish to join in?

3.             Does any one own more than 3 flats and for non-qualifying tenants?

4.             How long is left on the lease and the level of ground rent payable?

5.             Summarise the size and type of the flat (floor area or basic room details)?

6.             Summarise its location.

7.             Consider the type and nature of building – is it new or old, purpose-built .

8.             Is there appurtenant land such as outbuildings, gardens or garages?

9.             Know the name of your landlord.

10.           Are you aware of any planning applications made in relation to the property?

11.           Are you aware of any management issues or service charge dispute?

12.           Be clear about the purpose of your valuation.

 Only once you have this information ask your adviser to provide you with a quotation: be aware there are informal valuations (generally provided by an estate agent); desktop valuations (valuations undertaken without inspection); and formal valuations (a full inspection that should be accompanied with a full written report that is compliant with the RICS regulations), such as:

 

Property Location and Description

Property Accommodation

Property Condition and Development Potential

Planning History and Council Tax

Property Tenure Summary

Factors Affecting Value

Property Photographs

Schedule of Comparable Property Evidence

Valuation Premium Schedules

Each level of valuation will have a different fee level charged, but as this is possibly the second largest transaction on the flats (or may be the largest in the case of short leases) there should be a moral behind your decision: that getting the right advice is more crucial to you than the cheapest quotation for the valuation.