So you have bought the freehold, what happens next?
Once the process is completed and you are officially the freeholder, it's time to take stock of what a collective enfranchisement (freehold purchase) has gained you in terms of responsibility for the running and upkeep of your building. One of the most important points is the building's insurance. The Landlord's insurance must now be organised by the Leaseholders collectively. In addition there is also a necessity for the occupants of the Block to arrange their own fire and general risk assessments as well as acting on the results to ensure the building is compliant with health and safety regulation. There is also the matter of granting licenses permissions and any other processes deemed part of the Landlord's responsibility under the Lease. These depend on the wording of the lease but can range from agreeing to the redecoration or rebuilding of private and common parts of the building, subletting authorisations or even granting licences to have a pet at the property! These tasks can quickly become onerous for a group of leaseholders (now freeholders), so they may find it appropriate to delegate the management of the property to a managing agent.
Author : Mary-Anne Bowring
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