The Role Of A Participation Agreement In Collective Enfranchisement
The Role Of A Participation Agreement In Collective Enfranchisement
When leaseholders come together to buy the freehold or leasehold of a building it can be a fairly complex process. It often looks really straightforward on paper; leaseholders come together, they decide to conduct the freehold purchase of the building which houses their flats, they appoint a surveyor, have a valuation done and then hey presto, monies are exchanged and the ownership transfers to the tenants. Oh the joys of collective enfranchisement!In real life these processes are often complicated and hit unforseen problems. That is why the participation agreement can be vital in the process of collective enfranchisement. The agreement is a formal document that sets out who is participating within the scheme (remember that the law requires at least 66% of tenants be participating) and the agreement also has to set out which proportion of the price (that is the purchase price) will be attributable to each of the flats. In addition the agreement will include details of how much costs each participating flat needs to pay and this needs to be set out clearly, so that the collective enfranchisement process is not hindered at a later date, by people arguing about the costs that they have to pay.The participation agreement will dictate how many professional advisors will be required to work on the freehold purchase. This will include solicitors, surveyors and so on. Again this can help ease the enfranchisement process and simply ensure that it is smooth. The agreement will contain information about what majority is needed for the enfranchisement process. When the freeholder makes an offer therefore, it needs to be set out what will be acceptable in terms of how many tenants agree to the offer. This is crucial as it is difficult to get an agreement where everyone has agreed 100% instead aim to get the majority on board as soon as possible.Finally the participation agreement will need to clearly indicate the relationship between the different participators (to clear up any disagreements later in the process of collective enfranchisement) and it can also be helpful to have a nominated person or nominated few people named to liaise between the professionals appointed and the tenants participating in enfranchisement. This will help the process move along smoothly and ensure that the surveyors only have to deal with the nominated tenants, stopping everyone getting unecessarily involved.Thus the participation agreement can be vital to the process of collective enfranchisement and as such it should be regarded as a very valuable tool when it comes to undertaking a freehold purchase, simply because it alleviates the risk of disputes arising during the process. Hit Back At The Airways, Pick Cotswold Walking Holidays Medical Tourism Fair hosted by Special Events USA is carefully planned Summer Camps in Colorado Springs Fun-Filled Holidays in Dorset Celebrities Are Going Insane For the Brazilian Blow Dry! Will I have enough superannuation to retire on? Paris High end on a Finances The Blue Sky Card from American Express Tips on Traveling with Credit Cards A Look back: The First Ever International Cricket Tournament in Bangladesh Hukuru Miskiiy: The historic treasure of Paradise Island Adventure Travel - Let's Go On An Adventure! Asia Women Tour Introductions