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Wednesday, January 20, 2010leaseholdpropertymoney

Can a leaseholder demand to join our freehold?

Q I live in a building of four flats, all owned by long leaseholders. The freeholder wants to dispose of the entire freehold. Three of the four leaseholders have agreed that we will jointly purchase the freehold. The fourth leaseholder does not wish to participate and is content to become our leasee. Can this leaseholder subsequently compel the rest of us to sell him his share of the freehold if he changes his mind after our acquisition? DS A Groups of leaseholders who satisfy certain conditions – such as owning at least half the flats in the building – are able to enforce the sale of a freehold under the legal right of "collective enfranchisement". But individual leaseholders cannot act alone to enforce a sale. So, once you and your fellow leaseholders have taken over the freehold the fourth leaseholder not participating in the purchase will not, on his own, be able to make you sell him a share of it. More information on the process of collective enfranchisement is available on the website of the Leasehold Advisory Service .

Source: The Guardian ↗

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