What is the nominee purchaser? The nominee purchaser is a term that often arises in collective enfranchisement. Does it have to be one person? What happens with the other leaseholders? The nominee purchaser is the person named in the initial notice, and he or she will acquire the freehold, becoming the new landlord. A decision needs to be made as to who will be the nominee purchase as a first step. This person will then take over the process until completion.
However, the nominee purchaser is normally a company formed by the tenants for this purpose; this way, it is not down to one person to do all the work; the tenants then become their own landlord. A specialist enfranchisement solicitor will be able to advise on this and help to produce the articles of association necessary for the process.
Do we need a valuer? A valuer will be of great help to provide the enfranchising tenants with an idea of the final purchase price. To do this accurately is almost impossible, but in a collective enfranchisement process the valuer should be able to provide a best and worst figure. Bear in mind that figures will vary during the negotiation.
At the beginning of the process it is also a good idea to establish what is called a 'fighting fund'. This includes the stages taken prior to the initial notice and will confirm anny loans, mortgages, etc. Don't forget at this 'figures stage' you will have to cover the landlord's costs too.
What else do we need to know? Now is the right time to go away and collect all the relevant information you need. You will need to ensure that the initial notice is correct and valid and be able to respond to any challenges from the landlord.
Is the property a flying or severed freehold? Well, it only means that the freehold interest is in different ownerships. This won't be an obstacle, but you will need to gather information for all the freeholders. In general you will need:
- identity and address of all the freeholders
- information about any intervening or headleases and the identity of involved lessees
- all the relevant information about tenants in the building and details of their independent leases
- details of any flats in the control of the landlord and let on periodic tenancies.
Details of this can be sought from the Landlord (due to rights under Landlord and Tenant legislation), from the Land Registry or by serving an information notice.
Now you have adequate information in order to approach a specialised solcitor about using this right to enfranchise!