What will it cost to Enfranchise?
To exercise your right to buy the freehold you will need to agree a premium with the Landlord/Freeholder.
Valuing the premium is a complex calculation that will factor in a number of things such as unexpired lease term, ground rent and the market value of the property.
Step 1 in buying the freehold is to get a professional Freehold Valuation
In order to buy the freehold you will need to agree a premium to be paid to the Landlord/Freeholder.
Three options for negotiating the purchase of a freehold
Option 1 – The Formal Route
The first option, and the one most people choose, is the formal route based on a professional RICS Freehold Valuation. Your Solicitor will negotiate a fair premium that reflects your valuation and you have the added support of the time constraints set out by the 1993 Leasehold Reform Act.
This is the most cost and time effective route for buying the freehold and as is the least likely to go to the LVT. This route is likely to save you £1000’s from the premium you pay for buying your freehold.
There is no simple way of estimating the value of your freehold as this varies on a number of complex criteria. However, this is certainly the first step and in order to find out you need to get a Formal Valuation from a RICS qualified Surveyor. Fridaysmove have nationwide coverage of Surveyors and can provide a valuation for £199 (inclusive of VAT).
If you are planning to buy the freehold with a number of other Leaseholders we can offer significant discounts for Multi Flat Valuations.
Option 2 – The Informal Route
The second option is an informal offer based on a professional RICS Freehold Valuation. The valuation will enable you to put forward a sensible offer backed by a formal valuation based on the same formula that the LVT will use. Having a formal valuation will encourage the Freeholder to consider your offer more seriously. However, if the Freeholder accepts your offer you will be buying the freehold outside of the constraints of the 1993 Leasehold Reform Act.
Option 3 – Best Guess Route
The third is an informal offer based on a best guess of the value of the freehold. We do not recommend that you choose this option as you have no way of knowing whether you are overpaying and no Freeholder wants to undersell.
Call us now on 033 0660 0286.
Once you have a Valuation, see Step 2 – Section 13/Negotiation with the Freeholder.