Once you have a professional RICS Freehold Valuation the next step is to negotiate with the Freeholder
The first thing you will need is a surveyors’ valuation report. We can help you with this and we can usually provide you with a full
report within ten days of inspecting your property.
After you have received your valuation report and made an offer to your freeholder we can advise you how best to negotiate the
matter. We will always attempt to settle the matter through informal agreement directly with your freeholder or your freeholder’s surveyor.
If your freeholder will not agree to a reasonable level, we will advise you to serve a section 13 notice. The section 13 notice
represents your formal offer and is the first stage of the legal process for enfranchisement. Once a notice is served both
sides must adhere to a strict timetable and to rules concerning costs. Austin Gray can recommend a specialist solicitor for
any necessary legal services (unless you wish to use your own).
Your freeholder is entitled to have the freehold formally valued at this point and he will serve a counter notice (including his
counter offer, often at a substantially higher level). You are liable for the freeholder’s ‘reasonable costs’ up to this point.
After the freeholder serves his counter notice there is a period of two months in which the surveyors from each side will negotiate
the price. Many enfranchisements are settled at this point, however, if an agreement cannot be reached the price will be settled by
a leasehold valuation tribunal.
Once the price is settled your solicitor will form a freehold company and the participants will become equal shareholder’s – this
company will then purchase the freehold.