Collective Enfranchisement

Collective Enfranchisement Services and Costs

A freehold may be purchased either informally or formally (via statutory Collective Enfranchisement). Please review the procedure for Collective Enfranchisement for more information.

If you would like Pro-Leagle to manage part or all of the freehold purchase process for you, here is a breakdown of our charges:

General Freehold Purchase Services

  • The following services are applicable regardless of whether a freehold is purchased informally or via statutory means:
  1. Freehold Valuation
  2. Expert Negotiation

Informal Freehold Purchase Services

  • If an informal freehold purchase has been negotiated we can register the transfer of the freehold on your behalf:
  1. Legal work to transfer the freehold to the leaseholders (informal)

Statutory Collective Enfranchisement Services

  • We can manage all aspects of the formal, statutory Collective Enfranchisement process:
  1. Eligibility Assessment
  2. Management of the Collective Enfranchisement Process
  3. Application to the First-tier Tribunal (Property Chamber) (if required)
  4. Legal work to transfer the freehold to the leaseholders (formal)

Post Enfranchisement Services

  • The following services are applicable to leaseholders after they have purchased the freehold:
  1. Company Secretarial Services
  2. Managing your Property Pack
  3. Statutory Service Charge and Ground Rent Notices
  4. Forming a Residents Association

General Freehold Purchase Services

Freehold Valuation

  • You will receive a comprehensive Valuation Report providing an estimate of the value of the freehold asset and detailing relevant issues such as Marriage and Hope Value. In the case of flats, this valuation will be broken down to provide the cost per freehold share for each participating leaseholder. In the case of houses, you will receive an estimate of freehold value based on both the Original Valuation Basis and the Special Valuation Basis.
  • Pro-Leagle calculate the premium using the statutory formula. The Valuation takes into account the number of years remaining on your Lease together with the location and current value of the property. Premium Determinations in the First-tier Tribunal (Property Chamber) and its predecessor the Leasehold Valuation Tribunal for the area in question are also factored into the calculation of the freehold price.

Standard (7-10 working days): £99 per flat

Express (1-2 working days): £115 per flat

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Expert Negotiation

  • A settlement can often be reached without the leaseholders having to pursue statutory enfranchisement which can be time consuming and expensive. Following the valuation stage, Pro-Leagle can assist with expert negotiations to achieve the best price and terms for a freehold purchase. This includes communications by telephone, email and facsimile.
  • Alternatively, settlement can be achieved once the formal statutory Notice has been served and the freeholder has responded with a Counter Notice. Negotiation at this stage may save an application to the First-tier Tribunal (Property Chamber).
  • This service is capped at 1.5hrs of solicitor's time billed at £220.00 per hour.

Cost: up to £330.00

(depending on requirements).

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Informal Freehold Purchase Services

Legal work to transfer the Freehold to the Leaseholders

  • Service includes completion of all registration notices and related legal work necessary to effect transfer of the freehold.

Cost: generally £750.00 per flat plus Disbursements (typically £60.00 - £110.00 per flat)

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Statutory Collective Enfranchisement Services

Eligibility Assessment

  • This service provides confirmation of whether leaseholders qualify for statutory freehold purchase within the terms of the Leasehold Reform Act 1967, Leasehold Reform, Housing and Urban Development Act 1993 and the Commonhold and Leasehold Reform Act 2002.

Cost: £99.00 per flat

(together with £20.00 disbursements)

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Management of the Collective Enfranchisement Process

  • This service includes:
  1. Setting up a Nominee Purchaser Limited Company. This provides qualifying leaseholders with a fully incorporated Company Limited by Guarantee. The documentation which forms the Company, namely the Articles and Memorandum of Association are specialised to Enfranchisement Companies.
  2. Drafting and distributing the Participation Agreement to all leaseholders interested in purchasing the freehold.
  3. Establishing a reasonable premium to be inserted into the formal Notice upon instructions to appoint a surveyor or by using a Pro-Leagle Valuation Report.
  4. Drafting and serving the Initial Notice upon the freeholder and managing agent.
  5. Perusal of Counter-Notice if the freeholder is unwilling to negotiate the premium and terms of purchase and to discuss with the leaseholders the possibility of applying to the First-tier Tribunal (Property Chamber) to assert their right to purchase the freehold on statutory grounds.
  6. Also included in the fees are Companies House incorporation fees, postage and all correspondence.

Cost: £595.00 per flat

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Applications to the First-tier Tribunal (Property Chamber)

If the premium, terms and/or freeholder's legal/valuation costs cannot be agreed the matter may be referred to the First-tier Tribunal (Property Chamber) for a decision. Pro-Leagle can assist with:

  • To draft and file the Application to the Tribunal with the necessary bundle.
  • Preparation of submissions, corresponding with the client, the other side, the Tribunal and any third parties including Counsel and surveyors (where applicable).

Cost: £220.00 per hour

(usually 3-10 hours assistance are required)

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Legal work to transfer the Freehold to the Leaseholders

  • Service includes completion of all registration notices and related legal work necessary to effect transfer of the freehold.

Cost: £250.00 per flat plus Disbursements (typically £60.00 - £110.00 per flat)

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Post Enfranchisement Services

Company Secretarial Services

  • Nominee Purchaser companies (set up the leaseholders to purchase the freehold) must comply with Companies House regulations. Failure to do so may result in fines of up to £1500.
  • Pro-Leagle provides a Company Secretarial service including:
  1. Filing annual returns.
  2. Maintaining and filing of statutory dormant company accounts.
  3. Keeping the register of Directors updated with Companies House.

Cost: £99.00 per flat p.a.

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Managing your Property Pack

  • After the freehold purchase has been completed the new freeholders will need to decide whether to manage the property themselves or appoint a new Managing Agent.
  • By law, the leaseholders are still subject to maintenance clauses in their leases even though they are now also the freehold owners.
  • Pro-Leagle offer a Managing your Property Pack which will help you manage the property in an efficient and cost-effective way.

Cost: £90

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Statutory Service Charge and Ground Rent Notices

  • Leaseholders who do not participate in Collective Enfranchisement become subject to management by the new freeholders.
  • Requests for money from leaseholders (including Ground Rent and service charges) must be in a statutory format. If they are not, the leaseholder may not be legally required to pay. This is a complicated area of law and freeholders often get it wrong, to their detriment.
  • Pro-Leagle offer a Service Charge Law Pack allowing preparation of all the necessary documents. This pack will help ensure prompt payment and will save you time and possible legal costs from successful challenges to service charge requests.

Cost: £29.99 (Online Service)

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Forming a Residents' Association

  • If you incorporated an Nominee Purchaser Company in order to purchase your freehold, this company should be in charge of managing your property. However, setting up a formal Residents Association can save money, simplify accountancy procedures and make management more harmonious by involving leaseholders who did not participate in the freehold purchase.
  • Pro-Leagle offers a full Residents Association Law Pack which you can purchase online

Cost: £19.99 (Online Service)

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