The Initial Notice is served as an integral part of the enfranchisement process (which is itself often referred to as freehold purchase). It is a very important document both in terms of the process and of the framework. It actually forms the foundations upon which the process of enfranchisement can operate.
It should also be noted that if the Initial Notice is accepted by the landlord then it becomes legally binding. It is crucial for the Inital Notice to be as accurate as possible as this is grounding for the whole enfranchisement process.
Essentially if the Initial Notice does not contain enough information or contains errors then it is unlikely your enfranchisement process will get off the ground. But get it right and the Initial Notice will simply help the process glide to its conclusion.
For a start it is important to observe that the Initial Notice has to be signed by each of the participating tenants in order to ensure that the correct 'freehold purchase' procedures are adhered to from the start. Sometimes people assume that if there are joint tenants then only one needs to sign, but in fact, to ensure that the collective enfranchisement is being done properly, both joint tenants need to sign.
It is also important to be aware that the Initial Notice in any freehold purchase cannot be signed by an agent. It has to be signed by the tenant themselves. Nor is it acceptable for an agent to sign on behalf of a tenant.
It is important to demonstrate during the collective enfranchisement process that each tenant is fully aware and understands their actions. It is therefore not appropriate to have tenants signing a blank sheet of paper; they have to be seen to sign something that indicates exactly what the terms of the offer are.
The Initial Notice should contain an offer for the freeholder and information about what anticipated losses you expect for him/her. The sum offered will have to be carefully calculated, by the surveyor who has been appointed. The Initial Notice is prepared by the solicitor appointed by the leaseholders and is then served to the solicitors acting on behalf of the freeholder and the process of enfranchisement can then be started. Thus the Initial Notice is a critical part of the route to enfranchisement and it needs to be carefully drafted and issued as soon as possible, so that it can really launch enfranchisement and enable all participating tenants to complete their freehold purchase.
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Tim Bishop is senior partner at Bonallack & Bishop, a firm of
enfranchisement solicitors specialised in advising on
freehold purchase. He is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 12 years and has plans for its continued development.
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