The Residence Nil Rate Band (RNRB) enables certain individuals to leave more of their estate to their direct descendants, by increasing the amount of the estate that is taxed at 0% from up to £325,000 to up to £500,000 Rules that allow these...
Under the Leasehold Reform, Housing and Urban Development Act 1993 (as amended by the Commonhold and Leasehold Reform Act 2002), qualifying tenants have the right as a group to purchase the freehold of their building. This is commonly known as Collective Enfranchisement. The building must also qualify.
As this is a group activity, the process can be time-consuming and laborious. As well as advising on the legal technicalities, we can assist you in co-ordinating the work and avoiding unnecessary delay.
The benefits of acquiring the freehold of the building include:
- Taking charge of the management of the building and the respective service charges, insurance and ground rent.
- Granting the participating tenants new uniform 999 years leases for nil premium.
- Enhancing the saleability of the leasehold interest.
- Receiving income from the non-participating tenants from collection of the ground rent and chargeable premium for granting new leases.
A premium will be payable for the freehold and should be calculated by a specialist valuer. We would be happy to recommend and instruct a valuer on your behalf.
As with a statutory lease renewal/extension, the process is started by the participating tenants serving a formal notice. This notice has a contractual effect and triggers a strict statutory timetable and liability for the landlord’s costs. Therefore, we advise you seek professional advice before starting the process.
For further information please contact:
Andy Finkel (Harrow) on 020 8422 5678