Freehold Purchase Overview
Overview Pros and Cons Qualification Valuation Procedure Alternatives Services & Costs
Purchasing the freehold to a leasehold property will make it more marketable, easier to re-mortgage and prevents the diminution in property value with the decline in remaining lease term.
Leaseholders may have the statutory right to purchase the freehold with their neighbours even if the freeholder does not consent. The legal term for this is Collective Enfranchisement.
By contrast a freeholder will generally be required to offer the leaseholders "Right of First Refusal" if they wish to sell the freehold.
Freehold purchase or sales may be negotiated informally, or enacted via the relevant statutory process.
Pro-Leagle offer a range of freehold purchase and sale services with transparent pricing.
- There are rules in place defining whether a leaseholder has the right to exercise Collective Enfranchisement. Pro-Leagle has created an on-line qualification test to assess eligibility for leasehold flats. The criteria for leasehold houses are different. Contact Pro-Leagle to learn more.
- Complex rules define how much a freehold will cost. The freehold valuation process is explained in more detail in our valuation section.
- The outcome of following the Collective Enfranchisement procedure is that some/all of the leaseholders become freehold owners of the whole building. This will counteract the steady depreciation of leasehold property value over time.
- Before deciding to purchase the freehold of a leasehold flat or house, take a look at the pros and cons of Collective Enfranchisement. Leaseholders may also wish to consider the alternatives to Collective Enfranchisement.
