Step 1: Time to Take Action
You have been served with offer notices under Section 5 of the Landlord and Tenant Act 1987.
Step 2: Instructing a Solicitor
You discuss with us the options available to you and we connect you with specialist valuers who can provide advice as to whether the price specified in the offer notices is appropriate and/or good value.
Step 3: Review Time
You instruct us to begin the process and we review the offer notices to check that they are valid and review all relevant property documents in order to liaise with your valuer regarding the value of the building and extent of the land to be
purchased.
We will also provide a summary report to you on the freehold title and confirm the extent of the land and buildings which you will be entitled to acquire.
Step 4: Company Set Up
During this time, we can incorporate a company which will act as the buyer of the freehold (“Nominee Purchaser”) or you can arrange this for yourselves.
You will need to decide if you are going to share the purchase price and cost equally or if some people are going to pay more if they have larger flats, shorter leases or are funding the share of the purchase price which relates to any flats which are not joining in buying the freehold.
Step 5: Bespoke Documents
We will prepare the contract between the new company and all flat owners who are buying the freehold, known as a “Participation Agreement”. This contract will govern the purchase process and payments towards the purchase price and costs. We will also prepare the notice which confirms that you wish to buy the freehold (“Acceptance Notice”). This will also include details of the company which will act as the Nominee Purchaser.
Step 6: Time to Sign
You sign the Participation Agreement and the Acceptance Notice and we arrange completion of the Participation Agreement and service of the Acceptance Notice on the landlord.
Step 7: Acceptance Notice Served
Once the Acceptance Notice has been served, the landlord will have one month to issue a draft contract
Step 8: Contract Received
We will review the draft contract, liaise with the landlord’s solicitors and then report to you on the terms of the contract.
You will have a period of two months from when the contract is issued to offer to exchange contracts.
During this time, we will also draft the transfer and liaise with the landlord’s solicitors in this regard.
Step 9: Time to Sign
We will collect funds form you for the deposit payable, liaise with you regarding the proposed completion date and then liaise with the landlord’s solicitors to effect exchange.
Step 10: Pre-Completion
We will raise pre-completion enquiries of the landlord’s solicitor and carry out pre-completion searches.
You will need to arrange buildings insurance so that it is ready to go on risk on completion and you may wish to begin contacting prospective managing agents.
Step 11: Time to Sign the Transfer
We will send you the transfer for signature by the Nominee Purchaser company
For more information on accepting an offer to buy the freehold of your building, please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.