Buying the freehold on my block of flats

[Keitai]

Do we have to pay the freeholders costs (we do when re doing a flat lease) Currently,
For Sec 5 (right of first refusal) No (unless it says otherwise in the offer), for collective enfranchisement, yes. But that is changing. If you accept the offer and withdraw, i.e. your bid collapses, you will be liable for costs.

Can we charge what ever we want for lease extensions when we buy the freehold or do have to still abide by the current formula?
You can offer a better deal, but you cannot offer a worse deal

What is the formula for buying the freehold and is £60k a correct price or should we negotiate?
You haven't shared the details of all the leases, so nobody can help with the calculations..

https://www.freeholdcalculator.com/freehold_simple.php

might help you get a rough idea for each lease.

If someone else buys it what is the impact on us? For instance can they demand we pay any amount for renovations like roof etc?
No and the direction of travel is that freeholder/landlord are going to be more and more restricted.
Almost everything to do with a Lease/freeholder dispute can be settled via tribunal. (a form of legal arbitration). But currently Freeholders rely on the leaseholder not wanting the hassle.
So rogue agents tend to add a £100, here £50 there in the hope you wont take them to the tribunal. Building insurance is the biggest con as they get kickbacks of around 50%

Totally running out of time. Solicitor's meeting Thurs.

I've got to circulate the bank details from solicitor with people interested paying £100 in then hopefully Thurs we should have an idea of who's interested. Maybe attach reasons why purchase freehold from the freehold collective company I found online

We on the freehold calculator-

https://www.freeholdcalculator.com/freehold_simple.php

Mine was only £4500 but others £30000 lol with only 48 year leases but my lease is 115years.
Another solicitor was worried about how we confirmed our interest and done it legally wants me to contact the solicitor selling freehold (sent email below) I dunno how to phrase it.

Ww

 

[motorbiking]

Sorry were you asking for some advice in the above?

 

[Keitai]

Sorry were you asking for some advice in the above?

Yeah. How to word email to solicitor selling without giving them the idea that we may not have shown our interest totally legally according to section 5- just our emails saying interest and final persuasive sheet with bank details sound OK. Gonna circulate this-

 

[motorbiking]

Are you accepting the offer?

If so it’s a sec 6 notice.

Landlord and Tenant Act 1987

An Act to confer on tenants of flats rights with respect to the acquisition by them of their landlord’s reversion; to make provision for the appointment of a manager at the instance of such tenants and for the variation of long leases held by such tenants; to make further provision with respect...

www.legislation.gov.uk

Sec 6 notice letter must include:

For a Section 6 Notice to be legal, it must include:

Date of the notice, the address of the building in question and confirmation that the leaseholders intend to buy the freehold. The name and address of the person nominated by the group.
The names and addresses of every leaseholder involved in the purchase. A signature for the nominated person.

 

[carmanmemoranda]

Yeah. How to word email to solicitor selling without giving them the idea that we may not have shown our interest totally legally according to section 5- just our emails saying interest and final persuasive sheet with bank details sound OK. Gonna circulate this-
View attachment 363272View attachment 363273

Delete that pic. Too much info easily available

 

[blup]

Promoting a firm of lawyers is the least of keitais worries, he needs to get the notices legally watertight

 

[Keitai]

Promoting a firm of lawyers is the least of keitais worries, he needs to get the notices legally watertight

Meeting solicitor tomorrow, I guess he can check.

 

[motorbiking]

Counter offer is not a Sec 6, just in case you were unclear. For a Sec 6, I've provided the info you need to include.

If you are going to counter offer, I would lay the same information, unless you solicitor says otherwise.

 

[Keitai]

This email I got weeks ago from solicitor selling, dunno how important it is. Printed it off for solicitor tomorrow. Should have an idea how many people are interested by tomorrow by jow many have paid £100 into solicitor's bank account

 

[Keitai]

So it looks like there wasn't another buyer and we can now purchase it no matter how many participants we have. Think ten people have paid their £100. We've got until 6th Dec to see how many are interested. Some of the longer leaseholders aren't interested some are.

 

[motorbiking]

Did you send then a sec 6 response?

 

[motorbiking]

If there is no other buyer and you haven’t submitted a sec 6. You really should think about a lower offer.

 

[blup]

When does the head lease end?

 

[Keitai]

Did you send then a sec 6 response?

So been awhile but we've decided to get the freehold. Three of us will be directors. Total is £61,000 so about £5,400 each if 12 participate. I already have a lease extension so 114years now but hoping once I'm a freeholder can extend to 999 years and also sort out my current lease problem with head lease.

Are there any issues with the new legislation or downsides to being freeholders?

 

[motorbiking]

That’s a bit of a wide question, you need to be comfortable with the price you are paying given prices are falling.