Collective Enfranchisement – Buying the Freehold in London Properties
Buying a freehold can prove beneficial for countless reasons, from increasing the property’s value to securing a long-term home. However, purchasing freeholds isn’t always the best course of action for qualifying leaseholders. Armed with accurate collective enfranchisement reports, you can negotiate with your eyes open and ensure the acquisition process goes smoothly.
At Harding Chartered Surveyors, our team of RICS registered valuers can produce comprehensive collective enfranchisement reports and offer invaluable advice. In the process, we’ll help you protect your finances, prepare for future responsibilities and potentially save money. Call us today to speak with a London-based RICS valuer directly.
What does collective enfranchisement mean?
Under the amended Leasehold Reform Act 1993, qualifying leaseholders can collectively acquire their freehold building. To find out whether you qualify and how much the acquisition should cost, you might need to obtain a collective enfranchisement report from a RICS register valuer.
Should I buy my London freehold?
By acquiring a freehold, the participating leaseholders can:
- Claim full ownership of the freehold, usually by forming a company
- Increase their leasehold’s value
- Extend leases by up to 999 years, making them more attractive to buyers
- Eliminate ground rent, service charges and other landlord fees
Collective enfranchisement isn’t appropriate for all qualifying leaseholders. Acquiring a freehold can be a lengthy process, making it difficult to keep all leaseholders interested. Moreover, settling on a fair price, understanding the responsibilities of freehold ownership and coordinating all parties involved can prove challenging. Fortunately, our RICS valuers can remove many of those obstacles.
The benefits of valuations for collective enfranchisement
By obtaining a collective enfranchisement report, you can:
- Get an accurate market value of your leasehold and freehold building
- Hire an impartial representative to coordinate technical matters on your behalf
- Understand the possible outcomes of the negotiations
- Secure a fair price for the acquisition