30+ years qualified solicitor and founder Julie West explains issues that crop up during sale or purchase of a freehold reversion
Sometimes leaseholders buy the freehold from their landlord. We have experience of acting for both leaseholders and landlord in this situation. We have a detailed knowledge of the law as well as the ability to manage a major project.
Where we got involved
In one case involving 6 flats built over commercial premises we got involved because the landlord wanted to dispose of the freehold and the leaseholders had a statutory right to acquire it. A landlord that disposes of the freehold must comply with a statutory procedure.
In another case a majority of leaseholders called on the landlord to sell its freehold interest to them. The leaseholders collectively engaged JWS to acquire the freehold on their behalf. This involved initial advice, preparing and serving the required notices, preparing the transfer documentation, and using an existing residents’ owned management company to buy the freehold interest.
In a third example a handful of leaseholders whose own leases derived from an intermediate head lease combined to buy the freehold reversion by private negotiation from the original builder. Leaseholders were not all in a position to participate in buying the freehold. We needed to devise a means for future leaseholders to buy into the freehold at a later date.
How we made progress
Whether acting for the freeholder or one of numerous leaseholders, we investigated the legal position, analysed the facts and applied the law. Paying attention to detail we identified and observed important timeframes so that no rights were lost.
Individual leaseholders that took a lead role in these procedures valued the fact that we are local, so that consultations could easily be arranged to iron out the details and ensure smooth progression.
We managed the costs, a major aspect of the job, as well as holding the leaseholders’ financial contributions in a secure client account.
Added value
Julie West
Founder, 30+ years qualified property solicitor
Freeholder complied with the procedures for notifying qualifying leaseholders of a proposed sale and completed the sale of the freehold confident in the knowledge that the transaction could be challenged. With our help the transaction was secure.
With our expert guidance leaseholders seized the opportunity presented by the freeholder giving notice of an intended sale to exercise their right to buy the freehold, thereby taking control and becoming able to manage their development themselves.
Leaseholders found themselves in a position to waive or even terminate ground rent provisions in their leases. More importantly the leaseholders acting collectively were in a position to agree to extend their leases, thereby eliminating the risk of having to shell out wads of cash in the future for a lease extension.
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