What will happen once the freehold has been acquired?
If the main reason for acquiring the freehold is a shortening lease, once the freehold has been acquired it may then be necessary to complete the lease extension, typically to 999 years. At the same time the ground rent may be abolished and clauses in the lease that have caused problems in the past may be altered or even deleted. It may even be appropriate for a new lease to be drafted.
Participants in the freehold acquisition will not have to pay a further premium for this, only conveyancing/ legal costs. The conveyancing solicitors who deal with the freehold conveyancing will usually make proposals about lease changes at a follow-up meeting.
If the main reason for acquiring the freehold is perceived excessive service charges by the existing freeholder, it will be necessary for representatives of the new freehold company to appoint a managing agent or organise works themselves. There may be special arrangements in terms of buildings insurance.