13 Steps to Collective Enfranchisement
1. Instruct a properly qualified surveyor and solicitor with experience in the field of enfranchisement.
2. Your solicitor will serve a preliminary notice to obtain information from the Landlord requiring details of the legal interests in the block.
3. Ascertain whether a sufficient number of neighnours want to participate.
4. Your surveyor will inspect the Premises and undertake a valuation to determine the premium payable.
5. The participating tenants should enter into a participation agreement in order to regulate the relationship between them during the course of the claim.
6. Working with your solicitor you will need to establish what vehicle the participating tenants should use in order to buy the freehold e.g. Company or Trust.
7. Thereafter, your solicitor serves a tenant’s notice of claim which will include the premium.
8. The landlord is likely to respond with a procedural notice requiring payment of a deposit (equal to 10% of the premium being offered) and asking the tenant to deduce title.
9. The landlord will instruct his surveyor to inspect the flat and undertake a valuation in order to determine the Premium on behalf of the freeholder.
10. Within the period specified in the tenant’s notice, the landlord must serve his counter-notice.
11. If the claim is admitted, then the counter-notice must state, amongst other things: which of the proposals contained in the tenant’s notice are acceptable or not and the landlord’s counter-proposals – particularly the premium.
12. Once the counter notice is received both sides surveyors will aim negotiate a settlement for the premium which is agreeable to both leasesholders and freeholder.
13. If any terms of acquisition (including the price) remain in dispute after two months following the date of the counter-notice, then either party can apply to the First Tier Tribunal for the matter in dispute to be determined.
Olden Property are experts in the field of collective enfranchisement valuation and negotiations. Having worked throughout the southeast and greater London for over a decade we have undertaken hundreds of valuations for collective enfranchisement or freehold purchase purposes and successfully completed all negotiations on behalf of our clients. Olden Property has a full understanding of the relevant case and statute law needed to advise our clients effectively in this complex area of valuation. We can ensure you get the best deal possible in your negotiations with the freeholder or leaseholders.
We hope some of the information above is useful. Please get in touch if you or your clients have any questions around the subject of collective enfranchisement process, valuations and negotiation. A free 30 minute phone call with Tom will answer any questions you may have.