Collective Enfranchisement - Valuation
An outline of the valuation principles to determine the price for acquiring the freehold of a building containing flats under the Leasehold Reform Housing and Urban Development Act 1993.
Consult with other leaseholders to establish if there is a general wish to acquire the freehold. Determine if the building qualifies under the legislation and whether enough leaseholders are willing to participate formally in acquiring the freehold. If there are only 2 flats in the building both will need to participate. You may wish to draw up a participation agreement between the participating leaseholders to ensure that the process runs smoothly.
Have the freehold of the relevant premises valued to ensure that a realistic price is entered in the Section 13 Notice that will need to be served to start the formal process. There is no legal requirement to employ a surveyor, however it is advisable to do so because the premium proposed in the Section 13 Notice must be realistic.
Buying the freehold can be a difficult process. We recommend you get professional help from a solicitor and surveyor with experience in this area.
More information you might find useful:
- Collective Enfranchisement – Getting Started
- Participation Agreements
- More Frequently Asked Questions on Buying the Freehold of Flats
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Contact LEASE to have your enquiry dealt with by one of our experienced advisers