Buying the freehold on my block of flats

[motorbiking]

you could replace my examples with..
Companies don't buy freeholds unless there is good profit to be made. This will mean finding ways to charge us more, I encourage you to do some research on these freehold management companies. They make money by over charging on insurances and applying excessive fees for admin etc. e.g. https://www.leaseholdknowledge.com/?s=pier+management

We have the ability to add value to our homes and reduce our costs going forward.

How do I know the price is a good price?
As part of out due diligence we will obtain independent advice

Will it add value to my home?
Once under resident control, we have the ability to extend our leases on favourable terms. This will be substantially less than a 3rd party will want to charge. Flats with share of freehold are normally more desirable than those who are controlled by 3rd parties.

Will I save money in the long term?
As freeholders we have the ability to scrutinise costs and ensure that we obtain value for money. Building insurance under 3rd party control is likely to increase by 50-100%.

What happens if we ignore the offer?
The freehold will be sold to someone else and they will likely want a return on the investment. In the future if we want to force a sale back to us we will have to collectively enfranchise the freehold, which is a more costly and difficult process.

of course you do have to consider the Labour government has promised leaseholder reform, which could impact the value of the freehold. You may want to research what they are promising and decide if they will deliver it or not.

 

[Keitai]

you could replace my examples with..
Companies don't buy freeholds unless there is good profit to be made. This will mean finding ways to charge us more, I encourage you to do some research on these freehold management companies. They make money by over charging on insurances and applying excessive fees for admin etc. e.g. https://www.leaseholdknowledge.com/?s=pier+management

We have the ability to add value to our homes and reduce our costs going forward.

How do I know the price is a good price?
As part of out due diligence we will obtain independent advice

Will it add value to my home?
Once under resident control, we have the ability to extend our leases on favourable terms. This will be substantially less than a 3rd party will want to charge. Flats with share of freehold are normally more desirable than those who are controlled by 3rd parties.

Will I save money in the long term?
As freeholders we have the ability to scrutinise costs and ensure that we obtain value for money. Building insurance under 3rd party control is likely to increase by 50-100%.

What happens if we ignore the offer?
The freehold will be sold to someone else and they will likely want a return on the investment. In the future if we want to force a sale back to us we will have to collectively enfranchise the freehold, which is a more costly and difficult process.

of course you do have to consider the Labour government has promised leaseholder reform, which could impact the value of the freehold. You may want to research what they are promising and decide if they will deliver it or not.

Deliver in person to everyone

 

[motorbiking]

Delete last paragraph

 

[Keitai]

Delete last paragraph

How are we doing with time schedules? All we've done is register interest with estate company with more than ten people's emails.

Trying to get management company's guy to attend meeting but he's always sick or on annual leave. Is he fobbing me off? Other enthusiastic director has am operation etc Just press on with meeting?

 

[Keitai]

Delete last paragraph

They loved the letter. Meeting's Wednesday. Out of interest, do 11 out of the 22 flats have to buy for it to legally proceed? Or foe example can 3 chip in £20,000 each and form the freehold. Do we start a limited company and give ourselves shares etc People are skint and gonna ask how much this will cost

 

[Keitai]

Just spoke to a solicitor who has often dealt with our block of flats.

The section 5 is for all 22 flats all 4 blocks. I've been overthinking it though. If someone else does buy it the maintenance and ground rent won't change. The main benefit is for people who haven't renewed their leases. Mine is quite long 116 and was renewed. I dunno how much I'll benefit from it now.

 

[blup]

They loved the letter. Meeting's Wednesday. Out of interest, do 11 out of the 22 flats have to buy for it to legally proceed? Or foe example can 3 chip in £20,000 each and form the freehold. Do we start a limited company and give ourselves shares etc People are skint and gonna ask how much this will cost

Looks like a minimum of 11 ie half the leaseholders have to serve the notice , don’t know whether you could then set a company to own the freehold and control it through share ownership

 

[motorbiking]

Just spoke to a solicitor who has often dealt with our block of flats.

The section 5 is for all 22 flats all 4 blocks. I've been overthinking it though. If someone else does buy it the maintenance and ground rent won't change. The main benefit is for people who haven't renewed their leases. Mine is quite long 116 and was renewed. I dunno how much I'll benefit from it now.

They will attempt to levy admin fees on the collection and management

 

[Keitai]

Looks like a minimum of 11 ie half the leaseholders have to serve the notice , don’t know whether you could then set a company to own the freehold and control it through share ownership

Think you set up a limited company which offers shares. We need to nominate a solicitor at the meeting to do this. I guess I'll need to have costs- people are skint and will want figures. I'm hoping this solicitor will send me an email to take to the meeting.

 

[motorbiking]

your solicitor should give you a cost estimate and share documents on how and what you have to do. They will normally require a retainer £500 or so and they will need to complete some ID checks.

 

[Keitai]

So he's sent me an email with details of what needs to be done next- lots of info which I'll print out for everyone in the meeting.

As many but not all but including myself are skint the important thing is costs-

Fees for Freehold Purchase



I would estimate our charges being circa £3,450 plus VAT and expenses which would be divided between the participant lessees. As such, if 15 leaseholder participated, then the fee each would be circa £230 plus VAT. “Expenses” are payments we make to third parties such as Land Registry fees. I suggest you budget for expenses of about £250. I would let you know if it became apparent that we would have to spend more time on the matter than we originally estimated.



I hope that the above is of assistance to yourself and your fellow leaseholders so that you can all consider you do indeed wish to proceed.


So for example if 10 of the 22 leaseholders puts forward money it will be £61,000 divided by 10 plus around (£400 legal fees) so each person pays £6500. If 15 then less if 5 more. These figures are what people will want to hear. Maybe print off a calculation of cost for each amount of people so it's clear and they can take it away.

 

[motorbiking]

Yes not to mention that you will extend the lease of all those who buy in to the scheme. Late comers will not be offered this discount.

I would add 20% contingency to your lawyer fees.

see article on the process which may help.

Share of Freehold Lease Extension - Starck Uberoi Solicitors & Advocates

In this artice we explain the share of freehold lease extension and outline the process to negotiate and extend a new lease.

www.starckuberoi.co.uk

Not a recommendation.

 

[Keitai]

Yes not to mention that you will extend the lease of all those who buy in to the scheme. Late comers will not be offered this discount.

I would add 20% contingency to your lawyer fees.

see article on the process which may help.

Share of Freehold Lease Extension - Starck Uberoi Solicitors & Advocates

In this artice we explain the share of freehold lease extension and outline the process to negotiate and extend a new lease.

www.starckuberoi.co.uk

Not a recommendation.

Ok thxs. I've forwarded the process and costs sheet to some people by email. Do you think copy it tomorrow and put through all their letterboxes. And how about this basic clear breakdown of costs. Include that too?

 

[motorbiking]

You may want to talk about how those costs reduce when others join late and the value of the free lease extension.

 

[Keitai]

You may want to talk about how those costs reduce when others join late and the value of the free lease extension.

Are you saying the lease extensions will be free? Surely,we've got to charge something?

What would u charge people with short leases compared to people who've already extended their lease?

My neighbour who just extended his lease for £20,000 wants long lease holders to pay less? How much should I suggest?