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.
- The withdrawal of an individual participating tenant does not operate as a withdrawal from the acquisition pursuant to the requirements which are set out in Sections 28 and 29 of the Leasehold Reform Urban and Housing Development Act 1993.
- Accordingly the initial notice will continue to be valid notwithstanding the withdrawal of an individual participating tenant nor the fact that such a withdrawal will take the number of participating tenants below the required qualifying threshold.
- The remaining participating tenants will continue to be liable for all costs incurred in connection with the acquisition. It is therefore advisable that provision should be made in the participation agreement governing the terms on which participating tenants agree to conduct the acquisition of the freehold.
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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