https://youtu.be/KmuUmTS6SZY This is a short video explaining the basic points to consider if you are thinking about buying your freehold. It covers: whether your building will qualify or not, qualifying leases some other preliminary points to think about. I hope you find it useful. If you would like to know more then by all means contact me to discuss.
Buying the freehold with flat/s owned by the landlord not on a long lease
I want to buy my freehold, but there is one or more flats owned by the landlord that are not subject to a long lease. Can I do this? Yes. There are two possible pathways. Assuming that the building qualifies (and don’t forget it needs to be at least 2/3 let out on long leases) then there are rights to purchase the …
I want to buy my freehold and there is a commercial element in the building, can I do this?
The short answer to this: yes, provided that the area in question does not take up more than 25% of the building. The test can be complicated to apply, but essentially you are looking for a precise measurement of the net internal floor area of the property, compared with the net internal floor area of the remainder of the building. …
What is a ‘leaseback’?
Leasebacks and enfranchisement Where there are areas in a building that are not subject to a long lease, when a claim to the freehold is made, the freeholder may have certain rights of ‘leaseback’ – that is to say the right to ask for a 999 year lease of these areas. This means that when the freehold purchase completes, the …