Whether you are a property investor, individual or management company that owns freehold property subject to long leases, you may find yourself either wishing to sell it on, or compelled to sell it on by the freeholder exercising a righto to purchase known as "enfranchisement".
selling a freehold subject to long leases can be a difficult process, made more so by the obligation on you to give long leaseholders the right of first refusal to buy. Failing to properly allow the leaseholders this right can lead to the transaction being undone by the leaseholders at a later date and a breach of contract claim being made against you by the purchase, or even more seriously , criminal proceedings being brought against you.
It is vital to give qualifying tenants a valid notice of their rights, and to sell to them instead of your intended buyers if they exercise their rights.
Whether selling to a third party or to the tenants of a building, it is important to navigate what is a regulatory minefield with caution and expertise.
A group of flat owners in a building can obtain the right to buy the freehold from you. When your tenants have banded together and served you with a notice to buy the freehold of their building, it is important that you act promptly and effectively to find out whether they can validly make the claim, to obtain a fair price, and to make sure that the sale takes place on proper terms which do not upset the management of other properties you own nearby.
What Thackray Williams Do:
we act for freeholders in meeting the requirements of right of first refusal legislation, and then carefully managing sales to protect the seller from any unwanted consequences and ensuring the sale goes through as smoothly and swiftly as possible.
Where a building is enfranchised, we act for the freeholder in ensuring all deadlines are met, a fair price is achieved, and the sale takes place on proper terms that do not expose the freeholder to undue risk or liability.
Key work at a glance:
- Freehold sales
- Right of first refusal
- Section 5 notices
- Enfranchisement sales
- Tribunal claims
- County court claims