Buying the freehold on my block of flats

[Keitai]

An offer has come up for leaseholders on my blocks of flats to buy the freehold. 4 blocks of five flats total 20 flats. If we don't a landlord who is a notorious bad guy. He owns flat below me and is always causing trouble, he currently owns two flats out of the four blocks. Could he wreck havoc putting up fees if he buys the freehold? We need 11 people to put up £6000. Is it a good idea?



my flat is psid off but i dont have £6000 in the bank, will bank loan me it?

 

[securespark]

What sort of trouble does this geezer cause?

 

[Keitai]

What sort of trouble does this geezer cause?

Currently just threatening to kick me out claiming I make too much noise above his tenants below (he cant do that as i own the flat) but we suspect he'll try and put up costs on things like ground rent etc

 

[motorbiking]

Yes. Always better to have share of freehold. You can cover the cost by extending the lease free of charge, which should increase the value.

There are a few absolute bandits in the freehold management business and they cook up all sorts of ways to fleece leaseholders. I’ve been disputing and winning against one such company for over 20 years. But not everyone has the ability to take on their normally minimally qualified “lawyers”.

 

[motorbiking]

Currently just threatening to kick me out claiming I make too much noise above his tenants below (he cant do that as i own the flat) but we suspect he'll try and put up costs on things like ground rent etc

Does he have the right to sublet?

 

[motorbiking]

Since the OP hasn’t returned.

1. Call a meeting with the other leaseholders to discuss the risks of allowing the freehold to fall in to 3rd party hands
2. Talk to an estate agent to understand the increase value.
3. Get some advice on the process and valuation of the freehold.

You don’t say how long your lease is and what other terms exist.

 

[Fred Blogs]

As for your lack of £6000 only the bank can say if they will loan you that money. Ask them they can only say yes or no.

 

[mattylad]

Also you can get loans at places other than banks.
I have had several from Tesco's.

It's a rip off, but it's better to own the lease than not.

 

[Notch7]

Yes, go ahead and buy the freehold

Even if you have to get a loan

If in a few years you decide to sell, you may need to extend the lease and that could easily cost you £6k


Governments keep saying they will change the law around leaseholds and ground rents, it’s just a big scam

 

[blup]

In theory there should be more control of repair and maintenance if the leaseholders control the freehold but it depends on how they all get on. An expensive roof job might not appeal to ground floor tenants, but on balance shared ownership must bd the better bet

 

[motorbiking]

It’s much easier to do it when it’s up for sale rather than trying the collective enfranchisement route later.

 

[Keitai]

Apparently need 50% so ten of owners to email the current freeholders saying -

Dear Sir or Madam,

In response to your letter recently received we hereby register interest to purchase the freehold in accordance with section 6 of the landlord and tenants act 1987.

Yours sincerely

Name


(Flat Director)

This will get us through first two month stage and into second two months where we can discuss with solicitor if it's worth doing. Lots of confusion about many things though, e.g. might be only half the flats not all, is it just emailing their legal dept sufficient.


We need a solicitor but only a week to go until first two month stage expires then moves into 2nd two month stage

 

[motorbiking]

You can write the letter and pdf it and send it as an attachment. No need for wet signatures.

Register your interest and then see what is being offered.

You have the legal right to force the sale of the whole block. It’s also unlikely that part of the freehold is up for sale unless the landlord is stripping land out of the block?

 

[Keitai]

Ok so I'm continuing with getting people to email their interest but I guess might not be necessary anymore. Spoke to head of legal dept selling the freehold he said get a solicitor and meeting to confirm we want to go ahead but

I heard the main director in our block of flats can't afford the legal fees or is worried but surely just proceed to check it out? Think we need a solicitor asap is what he said.

 

[motorbiking]

Sorry you spoke to the other side's solicitor?

If so, Yes - he wont want to waste his clients money educating you, much easier for him if you are represented by a solicitor.

Do shop around, the more you can do yourselves the less it will cost.