The Leasehold Reform Housing and Urban Development Act 1993 gives the right to tenants of flats, acting together, to purchase the freehold and any head leases of their building.
In order for the building to qualify under the Leasehold Reform, Housing and Development Act 1993, it must:-
Be an independent building or part of a building which is capable of independent development
Contain two or more flats held by qualifying tenants*
Have at least two thirds of the flats held by qualifying tenants*
* those tenants on a long non-business lease which, when granted, was for a term of more than 21 years.
For flat owners, making a flat more attractive to mortgage lenders and potential purchaser is a key advantage of buying the freehold, also called enfranchisment. When the freehold is purchased, the leases can be extended to 999 years and modernised where necessary so enhancing the value and marketability of the flats in question.
In addition to this, many leaseholders have issues with their freeholders, in particular when they consider service charges to be excessive. Many tenants feel the best route to obtain control of their property is to buy the freehold and remove the freeholder from the equation. As specialist surveyors in this field we can provide you with a valuation for the freehold purchase.
For additional impartial advice and advice guides click on the link to the leasehold advisory service website.