To purchase the freehold of a property under the Leasehold Reform Housing and Urban Development Act 1993, as amended by the Commonhold and Leasehold Reform Act 2002 50% or more of the qualifying tenants must participate in order to force the freeholder to sell. Therefore, if there are only two tenants both must participate or if there are five then at least three and so on. It is possible for less than 50% to purchase the freehold but this would need to be with the freeholder’s agreement.
The freeholder must be compensated for their loss and it is important that the valuation is carried out by an experienced valuer to ensure the correct advice is given and the appropriate premium paid.
An important point to take into consideration is that the Act also provides for the freeholders reasonable and appropriate costs to be paid.
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Contact us to:
- Understand to what you are legally entitled
- Gain an understanding of the issues
- Obtain a valuation
- Know your rights