The freeholder is serving us Section 5b and going to sell the freehold at auction in Feb.
There are 5 flats in our block. We are paying the management company ~£400 a month as management fees for a 2 bedroom flat in Central London. All 5 owners thought the management company is a rip off and would like to explore the option of getting the freehold ourselves. Knowing the leasehold and freehold Reform Act is coming soon, is it not a good idea to buy the freehold now?
The legislation has already been passed, but some of it is not yet enacted. However, the option for leaseholders to jointly buy the freehold or even just elect to manage the property themselves when there is another freeholder has been there for many years. I would suggest you have a conversation with the Leasehold Advisory Service in the first instance.
Thank you for your advice.
We did talk to the advisor and therefore the 5 of us decided to explore the option of buying the freehold and to take back the management. However, we need to know roughly how much it is going to cost us to get a solicitor +/- surveyor, as some of us are pensioners. Nobody seems to have that answer ( I even asked my solicitor friend)
I think the existing leaseholders have a right to buy t the price agreed with the potential buyer
Ask how much it is
Legal fees on a transfer or purchase of a freehold is the same as buying any property.
No stamp duty I hope
Hi Sonia,
Probably joining this conversation late, and i have no experience of buying a freehold at auction, however you need not own the freehold to manage the block yourselves. If you can get a majority, or all of the leaseholders in your block, you can take out the current management company and agree to co-manage the block yourselves through “Right to Manage”. I almost winced when i read you were paying £400 a month for management fees! You must have a concierge, reception, private gym and lifts in the block serving the 5 flats?!