Freehold Valuation by Expert Chartered Surveyors Firm
Beyond the valuation process, we recognize the critical role of legal proceedings in collective enfranchisement. That’s why we’ve cultivated a robust network of seasoned solicitors who specialize in freehold enfranchisement matters. This collaboration ensures a holistic approach to the collective enfranchisement process, seamlessly integrating precise valuations with legally sound practices and allows leaseholders to benefit from one stop service.
What is Collective Freehold Enfranchisement?
Collective freehold enfranchisement is a statutory process that grants qualifying leaseholders the right to collectively acquire the freehold of a building in which they own individual flats. This right is established under the Leasehold Reform, Housing and Urban Development Act 1993. To qualify, certain criteria must be met, such as the building containing at least two flats, and two-thirds of those flats being held by qualifying tenants.
Upon successfully enfranchising the freehold, leaseholders become co-owners of the building, gaining control over crucial aspects of property management, service charge allocation, and decision-making. If you need more information you can read our collective enfranchisement guide or contact us for a free consultation.
Frequently Asked Questions
Explore our comprehensive FAQ sections, crafted to provide clear and detailed answers to common inquiries we get about freehold enfranchisement and our company.
What are the benefits of obtaining freehold valuation?
By obtaining a freehold valuation for collective enfranchisement you will benefit from:
- Our impartial and fair assessment of freehold value provides leaseholders with a clear understanding of their freehold purchase costs.
- Benefit from our rigorous negotiation skills, especially in prime parts of London and the South East, where we strive to reduce premiums for freehold purchase.
- We offer comprehensive support in the collective enfranchisement process, guiding leaseholders from start to finish through the complexities of acquiring the freehold.
What is a qualifying criteria for collective freehold enfranchisement?
The key requirements include:
- A minimum of two-thirds of the flats within the building must be held by qualifying tenants, regardless of whether the flat is registered under a private name or a company structure. A ‘qualifying tenant’ is defined as an individual holding a flat sold on a lease with an original term of more than 21 years.
- A participation threshold demands that at least 50% of qualifying tenants actively engage in the process of collective enfranchisement. For example, if there are 10 flats in the block, a minimum of five must participate. It’s important to note that in cases where the building comprises only two flats, both units must participate.
- The building must have a minimum of two flats to meet the eligibility criteria.
What exemptions exist that might hinder collective enfranchisement?
- An individual with an interest in more than two flats within the building is exempted and only counted as one qualifying leaseholder.
- Exemption is granted if a tenant conducts business on-site or holds a commercial lease.
- Flats held by a Charity Trust and utilized for charitable functions are exempt.
- Properties within cathedral precincts are exempt from collective enfranchisement.
- Buildings featuring operational railway elements, bridges, or tunnels are excluded.
- National Trust properties are exempt.
- Properties held by the Crown fall under the exemption category.
What forms freehold valuation for collective enfranchisement?
The methodology for determining the freehold purchase premium is detailed in Schedule 6, Part II of the Leasehold Reform, Housing and Urban Development Act 1993. This formula includes considerations such as:
- The income derived from ground rents (referred to as “the term”)
- The reversionary value of the freehold at lease expiration (“the reversion”)
- The marriage value
- The valuation of additional interests, such as commercial properties, land and garages.
- Also, compensation for various losses, denoted as “injurious affection.”
Services We Offer
Embarking on the journey of collective enfranchisement can be a complex and daunting process. We are committed to ensuring that your freehold acquisition is a seamless experience, characterized by freehold valuation accuracy and prudent legal advice.
Erikas Grig MRICS
Director, Erikas Grig Chartered Surveyors
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