Mary-Anne Bowring, Managing Director of the Ringley Group gives 10 reasons why buying the freehold is a good investment.
More say over the running of the block
Guarantees a 999 year lease (subject to passing resolution to authorise)
The block either manage the property themselves or outsource to a managing agent of their choice
Place insurance and demand any commission that would normally be paid to the Freeholder to be paid to the Freehold Company
Set service charge levels at an affordable rate (this could help combat service charge arrears)
Ability to set up a healthy reserve fund for large structural works
Appoint best value contractors, for example, gardeners and cleaners
Investment income (i.e. ground rent becomes receivable from non-participating flats
Future financial windfalls from selling lease extensions to non-participating flats.
Flats with share of freehold are more valuable and easier to sell than flats without
Buying the freehold can only be achieved if you have enough qualifying leaseholders.
For more information visit www.leaseholdguidance.co.uk
Minimise the cost by naming just 50% of the lessee's on your Section 13 Notice, you can still do a private deal for others to share in the price (buy a share later) but that way you only pay marriage value on the 50% of flats that participate.
Better still serve your Section 13 Notice naming long lease flats are participants to reduce the price further
(Weekly, fortnightly or monthly)