Common Problems With Collective Enfranchisement
Collective enfranchisment is the process of all the leaseholders getting together and purchasing the freehold interest. One frequently incurred problem with collective enfranchisement is that tenants are often very keen in the inital stages and then things break down as the process moves on.
This can lead to big problems amongst tenants and the only formal way to keep this under control is to create a participation agreement, this ensures that everyone involved knows what they have agreed to do and what exactly their role will be in the entire process, the agreement can list this information in a clear and concise way.
A common problem leaseholders face is dealing with an obstructive freeholder, this is something that they cannot prevent or anticipate. Yes, we may like to think that a freeholder will always be pleasant, nice, able to converse with the representatives of the leaseholders and so on, but in the real world there may be times where the freeholder is purposively difficult to deal with. Often it will be the case that the freeholder doesn't actually want to sell so will try to delay the process as long as they can. Sadly, it can happen that leaseholders end up with a lease with under 80 years remaining to run, which can be very expensive.
To counteract this, all representatives of the leaseholders should encourage freeholders to be as co-operative as possible. Although this may feel that during the whole collective enfranchisement procedure you are doing nothing but appeasing the landlord - but this approach can work wonders!
Red tape is something you are likely to encounter during the collective enfranchisement process. The process itself is quite simple, after all it is only freehold purchase, however you must be aware that different types of documents and agreements will have to be executed by your solicitors.Your surveyors will also require a certain amount of paperwork to be done.
Hoping to avoid all the red tape isn't really an option - unfortunately it's hard to avoid bureaucracy. You must accept this so that you can be sure that the schedule for the process doesn't slip. Simple patience and acceptance can help a collective enfranchisement process move quicker; If you think that the process is only going to take a few weeks, you might receive a bit of a surprise!
About the Author
Thinking of collective enfranchisement (http://www.enfranchisementsolicitors.co.uk )? Talk first to Bonallack and Bishop - solicitors specialising in freehold purchase. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 13 years and has plans for further expansion.
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