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The risk is that they install their own management company and jack up the service charges or use their own contractors to carry out overpriced Section 20 major works. Lease term and ground rent should be fixed unless you breach the terms of the lease. I'm not sure whether they can adjust other fees they might charge you (i.e. when you have work done yourself or transfer the lease)
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^ Thats not much of a risk though as the S20 works have to be reasonable and if they are real shysters then you can just do a RTM (Right To Manage) manage it yourself with the other leaseholders.
If you buy your freehold then you dont have to pay ground rent, your lease isnt a slowly depreciating asset (never let it get under 80 years - check google for 90 year lease extensions to find out why). you will own 50% of the Freehold with the other leaseholder if they are happy to buy too, and your leases which would be subject to the Freehold (which you would then own) or you can buy the whole freehold if the other leaseholder doesnt want it and get ground rent off them.
You will have to pay the market price though (which is what theyve agreed to sell at).
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It's all or nothing, and the offer can only be accepted by a majority of the qualifying tenants in the building (that is, tenants holding long leases), so you'd need the cooperation of your fellow tenant(s).
The sale of the freehold won't affect your status or the terms of your lease. All that changes is the identity of the freeholder. They might be a cunt, which would be bad, or they might be nice, which would be good.
Oh, and no, no spare £750k here. Soz.
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NickCJ
punkture
Brommers
@Bad_Science
I'm a leaseholder. The freeholder has just served me (and the other occupied flat) with a section 5a notification that they intend to sell the freehold.
I guess this is the right of first refusal, but it looks as if its the right of first refusal in buying the whole building.
Do I have the right to buy my share, or is it all or nothing?
What are the pitfalls?
If someone else buys, can they change my leasehold or get me out somehow?
Anyone got a spare £750K?