Once you have obtained a formal Freehold Purchase Valuation, Step 2 is to make an offer to the Freeholder or Landlord.
The formal offer is called a ‘Section 13 Notice’ and it will be completed in conjunction with then other Leaseholders wishing to purchase the Freehold with you.
The Section 13 Notice is an extensive form which will confirm:
- that you, as a Leseholder, have the right to buy the freehold
- the amount you would like to offer to purchase the Freehold
- the nominated purchaser
- a date by which the Freeholder must respond by. Note that the minimum time they are allowed before having to respond is two months. Of course the freeholder may jump at your offer and answer sooner – especially if your offer is on the high side. it is therefore highly recommended that your Section 13 Notice is accompanied by a RICS Chartered Valuation.
What happens once you receive the Freeholder’s response to the Section 13 Notice?
The formal freeholder response to a ‘Section 13 Notice’ is called a ‘Counter Notice’.
In the counter notice the Freeholder will either:
- accept the offer proposed in the Section 13 Notice
- agree in principle but propose varied terms – more than likely price. (The likelihood of this occurring if you have a formal valuation is significantly reduced)
- contest your right to buy the freehold which may ultimately be decided by the courts.
What if the Landlord does not accept the Section 13 offer?
What if the Freeholder does not respond to the Section 13 Notice?
If the Freeholder does not respond to your Section 13 Notice within the allowed period you are entitled to apply to apply to the court to obtain permission to buy the freehold. Should this course of action be necessary the you must apply within six months of the Section 13 Notice deadline.