Quiz - how well do you understand your lease?
Understand the key things you should know about your lease. If you are a purchaser, this can help make sure your solicitor has covered all of these points and explained them clearly to you.
Leaseholders who own a house can buy the freehold of their house either under the law if they meet certain criteria (formal route), or by asking the freeholder to see whether they are willing to sell the freehold informally (informal route).
Under this route the freeholder and the leaseholder need to follow a procedure and strict timescales set out in the law. This route offers more protection to a leaseholder if the parties cannot not agree the terms and/or the price. Leaseholders can in this case apply to the Tribunal to decide on the issue.
Under this route, a leaseholders can approach the freeholder in the first instance and ask whether they are interested in selling them the freehold. There is no obligation on the freeholder to respond or to agree to sell following this request. If the freeholder agrees then both parties will have to negotiate.
It is worth starting the process informally as it could save time and money. But if negotiations fail, then leaseholders who comply with the criteria, can use the formal route to try and purchase the freehold and go to the Tribunal if no agreement on the price or terms can be reached.
Buying the freehold can be a difficult process. We recommend you get professional help from a solicitor and surveyor with experience in this area.
Download a template informal letter enquiring about lease extension of a flat, or to purchase the freehold of a house or flat
More information you might find useful:
- Houses – Qualification and Valuation
- Application to the First-tier Tribunal (Property Chamber)
- More Frequently Asked Questions on Houses – Enfranchisement and Lease Extension
Still not found the answer?
Contact LEASE to have your enquiry dealt with by one of our experienced advisers