Group action - understanding the benefits
Receiving a Section 5 Notice is an excellent opportunity for you and your neighbours, but the process can be fraught with issues and the strict deadlines for responses can present a range of logistical challenges. If you miss any of the statutory timelines, even by one day, you will lose the legal right to purchase your freehold in this manner.
Our considerable experience of these freehold purchases has taught us that the first deadline is usually the most challenging to meet.
From the date provided on the initial Section 5 Notice, you have exactly two months to serve an Acceptance Notice on your freeholder, which confirms your intent to buy.
The legal qualification for you to be able to serve the Acceptance Notice requires the majority of leaseholders, i.e. more than 50%, agree to act at the same time.
WARNING: If you are unable to get the agreement of this number of leaseholders, you will not be able to proceed to the next stage.
- The challenge in coordinating the serving of an Acceptance Notice often revolves around the ability to contact all the leaseholders in a building or estate, many of whom will not actually live there.
- Those leaseholders will have to understand and accept the benefits of purchasing their share of the freehold, as well as understanding the benefits of purchasing the freehold through the Right of First Refusal.
- You will also need to examine the price you have been offered to establish if it is a good fair price or is overpriced.
- You will also need to negotiate with a specialist surveyor and solicitor to represent you through this process. And you have only two months to do this!
- If you have neighbours who do not wish to participate, additional funding is required to cover their costs - in our experience, this is usually the main hurdle to overcome. Don’t worry - there are many ways of tackling it and we are happy to talk you through the options.
The benefits of forming a group with your neighbours
Our videos have been designed to help you gain an overview and better understanding of the Right of First Refusal but it is important to remember that they are for information only.
It is vital that you seek valuation and legal advice for your specific circumstances.
We hope you find this site and our videos useful, but it is important to remember that they are for information only. The process is lengthy and complicated, and it is vital that you seek valuation and legal advice specific to your circumstances.
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