Different Ways to Finance Your Freehold Purchase - By: Tim Bishop

Do not be fooled into thinking that in order to purchase your freehold you must get more money from the bank or building society in the form of a mortgage or loan. There are other options open to you and you should read on to find out more.

Another option to facilitate for your freehold purchase is that all the leaseholders club together and then a company is formed, so that the company buys the freehold, not individuals. Then you are able to raise funding through the company and this will mean that you can secure money at a preferential rate in terms of your repayments. So this is definitely a good option.

Creating a fund for the freehold purchase can also be a good idea. This is because the whole procedure of the freehold purchase can be a lengthy process. Exercising your legal right to purchase the freehold (or collective enfranchisement) is quite a difficult area of the law. So along the way, there will be times when costs arise and the sooner a collective fund is started the better. In effect this means that the enfranchisement can be as smooth as possible.

Sometimes not all tenants wish to participate within the scheme, but so long as 66% of tenants are keen, then it can still go ahead. This does mean that those people whom are involved in the process will have costs to bare; there may be a case for outside investors to be attracted into the scheme. It some cases you will find investment companies whom are willing to make you an offer and they are always an option you should explore. Ideally this approach should be made at the very early stages of the freehold purchase.

Freehold purchase or collective enfranchisement can be funded by a not for profit co-operative being formed. This is slightly different from the formation of a company, since companies will ultimately seek to make some kind of profit, but a co-operative has a slightly different ethos and philosophy; however it does need a large amount of co-operation during the entire collective enfranchisement process.

Thus there are different options available when it comes to exercising your freehold right to buy. Care should be taken to explore all the options to ascertain which will be the most beneficial for all. It is important that adequate funding is in place and can flexible enough to deal with the enfranchisement process without unecessary delay being caused to the freehold purchase!

About the Author

If you need an experienced freehold purchase lawyer then contact Bonallack & Bishop Solicitors, a firm specialising in your freehold right to buy. Senior Partner Tim Bishop is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. He has expanded the firm by 1000% in 12 years and has plans for its continued development.

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