Behold the benefits of freehold

In a tough economy and with an uncertain housing market, it's never been more important to safeguard the value of our homes. It's a message that has seen more and more flat owners unite to purchase the freehold interest of their block - a process known as Leasehold Enfranchisement.

According to Robert Plant, Commercial Property Partner at leading law firm Tolhurst Fisher, the benefits of Leasehold Enfranchisement can be considerable.

"Owning the freehold puts the residents in total control of the building. Crucially, once the freehold has been paid for, they can grant themselves extended leases of up to 999 years, without each having to pay a premium or marriage value to the landlord. And history shows long leases sell.
"There are also significant short and mid term benefits to be enjoyed too, such as the right to manage. This means tenants can employ their own management company or even take full responsibility for the building's upkeep themselves - opening up a host of cost saving opportunities by re-negotiating contracts or switching suppliers for the various services used. Plus dated leases can easily be modernised and ground rent reduced to a peppercorn."

When it comes to selling the property, all benefits will automatically transfer to the buyer. In a buyer's market, this alone could make the difference between selling or stagnating on an estate agent's books.

While Leasehold Enfranchisement is an attractive prospect for many homeowners, choosing the right solicitor to act for you is crucial. The consequences of incorrect notices can be costly and equally frustrating, with failed notices resulting in a twelve month exclusion period.

Tolhurst Fisher is a leading law enfranchisement law practice and a member of the Association of Leasehold Enfranchisement Practitioners, with specialist knowledge and experience of the Leasehold Enfranchisement process. This includes representing clients throughout the leasehold valuation tribunal procedure.