This division of the premium and the costs when leaseholders purchase the freehold is not stated in the law. The leaseholders who want to buy the freehold have to agree this between themselves.
It is important to agree on this point before starting the process. You may wish to enter into a Participation Agreement to make sure all the participating leaseholders provide funds in the agreed proportions. To see an example of a Participation Agreement you can click here.
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:
- Participation Agreements
- Collective Enfranchisement – Getting Started
- 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