FDR Law, has completed a deal to obtain the freehold of a unique residential development on London’s south bank.
Situated in Bermondsey, The Valentine Building is a new development of apartments of a contemporary style and built on the site of an old public house.
Acting on behalf of the tenants, FDR Law has successfully acquired the freehold for The Valentine Building, allowing residents to make their own decisions concerning the management of the block and also giving them the ability to extend their own leases without having to go through a further costly process.
“This was a complex deal which took a team of four approximately nine months to complete. As well as forming a company (Valentine Freehold Ltd.), to acquire the freehold, there was a complex degree of due diligence that needed to be carried out before the deal could be finalised,” commented Tim Jordan, Head of Residential Conveyancing, FDR Law.
Legislation has made it easier for leaseholders to take control and buy their freehold, a process called collective enfranchisement, which gives tenants the right to club together with other leaseholders to buy the freehold for a fair market price.
“By owning the freehold of the property, we as leaseholders now have direct control over the property’s management. We will be able to act in the best interests of the leaseholders by getting rid of the ground rent charges, extending the property leases to the full 999 term and working with the managing agents to select and appoint contractors, ensuring the correct service agreements are in place,” commented Sheila Simison, Director, Valentine Freehold Ltd.
"We’ve seen strong growth in town centre and inner city apartment developments over the last few years and we're seeing a growing demand from clients for freehold acquisitions. Whilst it’s quite a specialised area and can be a very complicated and drawn out process, it can save tenants tens of thousands of pounds on ground rent, lease extensions and service charges from a freeholder,” commented Tim Jordan.