Specialist consultancy providing Leasehold Reform services for leaseholders and landlords
The right to acquire the freehold of a building of residential flats, known as collective enfranchisement under the Leasehold Reform Housing & Urban Development Act 1993, offers leaseholders the opportunity to dramatically change the status of their flats from leasehold with a finite term, to share of ownership of the freehold in perpetuity. Bluepoint Consulting can advise on the enfranchisement process as well as the financing of the freehold purchase.
Many residential buildings have in place a headlessor with an intermediate interest between the freeholder and the leaseholders. Headlessors are typically property investment companies which consider their interest in financial terms, and so may be willing sellers. In some circumstances, an approach to the headlessor may be fruitful, in others a right of first refusal under the Landlord & Tenant Act 1987 may be a useful negotiating tactic.
Short leases are wasting assets and are certain to become less valuable and less marketable as the lease length shortens. The right for an individual leaseholder to purchase a 90 year extension is one way of addressing the shortness of a flat's lease. While this may sound like a simple procedure, complications could arise if, for example, the freeholder pressures the leaseholder to agree to a “non-statutory” extended lease.
For many investors in freehold and headlease interests in residential and part-residential properties, the constraints and obligations of the Leasehold Reform legislation can be seen as barriers to the successful implementation of their business plans. The legislation warrants mindful consideration to allow the development of a profitable portfolio of freehold and headlease interests with certain risk-moderating measures.
Bluepoint Consulting is a specialist consultancy established in 2005 specifically to meet the growing demand for strategy consulting and project management services in residential Leasehold Reform matters.
In each project, Bluepoint Consulting aims to help clients to:
Make the best use of the Leasehold Reform opportunities and constraints
Save money and time by pursuing the clearest and most effective route to achieve their objectives
Grosvenor Street W1
Bluepoint Consulting acted on behalf of the leaseholders of this Mayfair building to negotiate a non-statutory purchase of the freehold from Grosvenor Estate, despite the estate’s general policy of not selling freeholds and despite the fact that this building was considered non-qualifying for statutory purchase by collective enfranchisement. The purchase of the freehold for nearly £3 million put into the leaseholders' possession the freehold of one of the larger residential buildings in central Mayfair.
Holland Park W11
Bluepoint Consulting advised the leaseholders on the collective enfranchisement to purchase the freehold of this building from a freeholder who did not want to sell and tried every route to retain the freehold, all the way to a tribunal hearing. Despite the freeholder’s attempts to argue for a price of £305,000, with Bluepoint’s guidance the leaseholders achieved a tribunal determination of £150,000.
Eardley Crescent SW5
The leaseholders of this Earl’s Court building approached Bluepoint Consulting just weeks before the critical point where their leases would have unexpired terms of less than 80 years. Bluepoint organised their successful collective enfranchisement in time for the purchase of the freehold to be priced very considerably lower than would have been the case after the 80 year point.
West End Lane NW6
Bluepoint Consulting acted for the leaseholders of this West Hampstead building on their purchase of the freehold by collective enfranchisement including four retail units on the ground floor. The leaseback of the retail shops to the former freeholder was the subject of disagreement and required an application to tribunal for a determination of the terms of the retail leases with respect to the control that the leaseholders could exercise over the type of retailer which may occupy the shops. With guidance from Bluepoint Consulting, the leaseholders achieved a prohibition on inappropriate use of the retail spaces for the duration of the former freeholder’s 999 year leaseback.
Aynhoe Road W14
Bluepoint Consulting was approached by the leaseholders of this building in Brook Green to advise on remedies to a difficult relationship with a freeholder who was determined to proceed with expensive works to the building. Bluepoint guided them through the collective enfranchisement process, against numerous legal attempts by the freeholder to impede them, with the end result of their purchase of the freehold and their control over future expenditure on the building.