The first notice that comes to the attention of a freeholder, that the lessee's of a block intend to enfranchise may be the receipt of a Section 13 Notice.
That notice will state a date by which a counter-notice must be served, which has to be no less than 2 months after the date of the initial notice.
A solicitor can check, whether or not the notice is valid and that all the signatories to the notice are qualifying tenants.
Once it has been established that the nominee purchaser has the right to serve a Section 13 Notice, the landlord has to confirm the figure which should be entered into the Counter Notice.
On behalf of the landlord, Kirkby and Diamond can inspect as many of the properties within the block that are available to inspect and prepare a valuation under the terms of the Act.
The valuation is made up of three different sections being:-
1. Diminution in the value of the freeholder’s reversionary interest
2. The Marriage Value (where there is less than 80 years unexpired).
3. The compensation for any other losses i.e. loss of potential for development, loss of the potential to earn income from placing insurance policies and management fees etc.
Once a Section 13 Notice has been served, the nominee purchaser is statutorily responsible for the landlord’s reasonable legal and valuation fees.
This however does not cover the fees relating to negotiation or attendance at a Valuation Tribunal should the sums be disputed.
Once the counter-notice is served, Kirkby and Diamond can act on behalf of the freeholder in negotiating a settlement.
If it is not possible to agree with the leaseholder’s representative, an acceptable negotiated settlement, the recourse is to the Valuation Tribunal, who will settle the figure and settle any disputed terms under the sale.
For more information on the process, please contact either Jean Howe on (01582) 738866 or Tim Sheridan on (01908) 678800.
Related links:
Collective Enfranchisement For Lessees of Flats
Sale Of The Freehold Of Block Of Flats Where The Landlord Wants To Sell