With a view to taking control of the management of their building, a group of 12 flat owners instructed myleasehold to undertake a valuation for a collective enfranchisement. The total value of the flats in the block was in the region of £10,000,000 and each lease had approximately 120 unexpired.
In addition to valuing the freehold, myleasehold’s advice to the flat owners was to approach the Freeholder to enquire whether they would consider a disposal of the freehold, and if so on what terms. Not only were the Landlords receptive to selling the freehold, the price negotiated by myleasehold was at a lower level compared to the likely outcome if a Notice of Claim had been served using the formal route. The premium was worth up to £150,000 under the legislation, whilst the agreed price was £110,000.
Not only was there a notable saving on the premium, there was a significant fee saving compared to the fees that would have been incurred (at the Leaseholders’ expense) had the freehold been acquired using the formal route.