Procedure for the purchase of the freehold interest
A summary of the procedure and how this breaks down as between valuer/surveyor and us is set out below:
• The first step is to obtain a ‘best and worst case’ valuation from a suitably qualified valuer/surveyor.
If the leases have less than 80 years unexpired the purchase price can increase considerably as, what is known as the ‘marriage value’ element of the valuation will have to be paid. As such, it is advisable that the process be initiated as soon as possible as the time for valuation of the freehold will stop to run at the time the Notice of Claim is served.
We can recommend a valuer/surveyor to you.
- Once the valuation is obtained we will then prepare and serve the Notice of Claim on the freeholder
- The freeholder can request proof of your respective rights to purchase the freehold and request access to each flat for an inspection to deal with any matters arising out of your claim, including the valuation of the flats.
- The freeholder must then serve a Counter-Notice within 2 months from the date of service of your Notice of Claim setting out whether or not your right to purchase the freehold is accepted and whether or not the terms contained in your Notice of Claim (including the purchase price) are accepted.
If the freeholder fails to respond to the Notice of Claim you will be entitled to make an application to the Leasehold Valuation Tribunal for a determination that the sale proceeds on the terms set out in your Notice of Claim.
- Once the freeholder’s Counter-Notice has been received, if negotiations are required these can then take place to try to agree terms.
- If a price is agreed through negotiation we can deal with the conveyancing aspects of your purchase.
- If the terms are not agreed either party can apply to the Leasehold Valuation Tribunal to determine the price and any other matters in dispute. In this event both surveyor and solicitor are involved.
- Once the Tribunal has determined the terms we can carry out the conveyancing for you.
If you would like to discuss the above, please email us or go back to our other contact details.