1. Once half of the flats in the building have been joined together to form the acquisition group you will instruct Zone to act on behalf of the acquisition group.
2. Following the formula confirmed in the Leasehold Reform Housing and Urban Development Act 1993, the surveyor instructed will calculate the likely premium and put in place formal application to the freeholder.
3. The solicitor instructed will set up a company for the acquisition group with all participating leaseholders becoming a member of the company.
4. A participation agreement will be put together to be signed by all members of the company confirming contribution costs towards the acquisition.
5. Zone will serve the “Section 13 notice” on the freeholder.
6. Once the “Section 13 notice” has been served on the freeholder, the freeholder has two months to either contest the offer or come back with a premium counter offer. If the freeholder contests the right for the acquisition group to purchase the freehol then the acquisition group will have to apply to County Court for a declaration as to their entitlement. Should the Freeholder accept the acquisition groups right to purchase the freehold but disputes the terms such as the premium, another two month window is given to negotiate. If no agreement can be reached then a further four month window is given for either part to apply to the First Tier Tribunal to provide a ruling on the terms. If this goes to a Tribunal then the Tribunal will make a ruling further to hearing evidence from both parties.
7. Once terms have been agreed or the Tribunal has made a ruling, the acquisition group and freeholder are required to enter into a contract confirming the purchase of the freehold.
* Please note that the acquisition group are required to pay the freeholder’s reasonable, legal and surveyor’s costs as well as their own costs.