Served Section 13
I've been served a section 13 notice by my leaseholders.
As a freeholder, you are not responsible for the fair and reasonable valuation and legal fees, these must be paid for by your leaseholders. Please contact us to arrange your valuation and discuss your position.
The Leasehold Reform Housing and Urban Development Act 1993 entitles qualifying leaseholders to collectively buy their freehold (freehold enfranchisement/collective enfranchisement).
What is the enfranchisement process?
- Instruct a solicitor who will check the validity of the notice and request 10% of the proposed premium up front.
- Instruct a surveyor who will carry out a valuation on your behalf. Your solicitor will collect these fees on completion of the lease extension.
- Respond with a Section 21 notice proposing a counter offer to the premium.
- Instruct a surveyor to negotiate a fair and reasonable premium. Note that the freeholder is responsible to negotiating fees going forwards.
- If the premium is not agreed before 6 months from the Section 42 notice, this is the latest an application to the First Tier Tribunal can be made, otherwise the Section 42 notice is deemed withdrawn.
- Solicitors agree terms of new lease.
- Upon agreement of the terms, there is 4 months to complete the process.
To discuss the process in greater detail and receive a quote, contact one of our experts.
What is a freehold?
A freehold is the complete ownership of a piece of land and all immovable structures built on it.
If you buy a freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for both these costs. Most houses are freehold but some might be leasehold, usually through share-ownership schemes.
What is a section 13 notice?
A leasehold enfranchisement section 13 notice also known as an initial notice, is the formal notice which, when it's sent through to your landlord/freeholder, triggers off the official statutory collective enfranchisement process.
What is a section 21 notice?
This standard document is a landlord's counter notice under section 21 of the leasehold reform, housing and urban development act 1993 (lrhuda 1993) admitting the tenants' claim to acquire the freehold. This process is sometimes referred to as a collective enfranchisement.
What is a section 42 notice?
A section 42 notice (also known as a tenant’s notice) is served on the landlord/freeholder of a property and starts the purchase of the freehold or lease extension process. Once a valuation of the property has been carried out by your surveyor they will send the valuation on to your solicitor.
Next, your solicitor will serve a section 42 notice on your landlord/freeholder advising the amount you are willing to pay for the freehold.
What is the first tier tribunal?
The first tier tribunal is part of the court system in the united kingdom. The first tier tribunal (property chamber) has 5 regional offices throughout england that deal with settling disputes in relation to leasehold property and the private rented sector.