Langton Priory

The Backstory

Langton Priory is a luxury residential property comprising two buildings of six flats each on a spacious site in Guildford. The group of residents were in the beginning stages of forming a collective in order to acquire their Freehold, but they were running into problems.

Initially, one leaseholder attempted to start a process to look at the potential to acquire the freehold, and, although there was support amongst a number of flat owners, the project was reported to be unstructured and did not proceed.

The Problem

Langton Priory presented us with a common issue: the group which had been formed to implement the acquisition had little in the way of organisation and very little agreement on how to complete the acquisition process successfully. They had a failed start.

Personality clashes made working conditions somewhat difficult. In order to take over a freehold, the lead collective group must have a level of organisation and this comes from good communication – without this, the whole project is at risk: exactly as it was when the Freehold Collective was approached for help.

How TFC Won the Freehold

Everyone at The Freehold Collective is familiar with the intricacies that come with forming a collective freehold group. We know how to resolve communication issues, how to strategise, how to deal with the unexpected and how to keep everybody focused on the goal at hand: purchasing their freehold in the shortest amount of time for the best value.

So, we once again deployed our already winning formula.

Careful and considerate communication with all residents

We knew we needed to start with the appointment of lead leaseholders and to encourage all the other leaseholders to work together. This meant finding common psychological dynamics between them. We took the time to have individual, intricate conversations until these dynamics and areas of common ground were uncovered, leading to an initial strong platform of understanding.

In general, the more leaseholders that join together the better. We identified and resolved all the questions and reservations that each leaseholder had. This was a task which required careful and tactful communication with 12 different flats owners. There were several complex personal dynamics in play – including one resident that was selling their property and another that was in the middle of a difficult personal issue.

Despite these complexities, The Freehold Collective was able to get all 12 leaseholders on board – that is 100% participation! On two occasions, when the sale went through for a leaseholder who was selling their flat, we even managed to onboard the new owner – an incredibly difficult and sensitive process.

Through time and our expertise, we moulded the group into a decision-making collective who were inspired and motivated to follow our strategy and move forward into the next stage.

Negotiation and leadership with external parties

Just before The Freehold Collective began the process of forming the group, the original Freeholder had gone insolvent – which left the building’s freehold in the hands of administrators and left us wondering who was paying, who we would be going up against, and exactly how to buy the freehold.

We began by completing a valuation of the freehold, which came out to £140,000-£210,000. When there is such a large gap, it is due to a range of uncertain factors but we were still satisfied that the figures were in line with market value. 

Next, we took a risk: we instructed solicitors and the surveyor to not serve a S13 but instead begin negotiation outside of the act. Within the act, you receive the notice and you pay the notice all within 6 months of negotiation. It’s more certain, but we also knew the counter notice would not have come in at under £140k and we believed that at best leaseholders would have to settle at a purchase price of £100,000 or much higher.

So, outside of the act we approached the counterparty’s side – that is, the administrators. We offered to negotiate a settlement that had no leasebacks (the arrangement in which an asset that is sold can be leased back from the purchaser) and we were incredibly surprised at the response: the settlement for the freehold came out to an incredible £30,000. 

We did all this at the same time that the solicitors on the administrators side almost detrimentally impacted the freehold acquisition side. The solicitors had no idea how to serve the notice, so The Freehold Collective stepped in to help solicitors navigate the issuing and taught them how to serve the notice. If this was not done correctly it’s a criminal offence – so we saved everyone from severe legal implications! 

Had the Freehold Collective not taken a risk by opting to negotiate outside of the act, that amount would not have been on the table. Instead, the stars aligned because the administrators wanted a quick sale.

Instigating a supported stage three

As well as collaborating with the freeholders and deploying a risky strategy for a great outcome, The Freehold Collective also supported the leaseholders as they moved from acquisition to ownership. 

In the 6 months after the settlement, the leaseholders were jittery. Moving from acquisition to ownership is not an easy process and some leaseholders were struggling with the idea of the responsibility of the building. 

Worse, on the day of completion, there was a last minute issue with securing a final signature from a leaseholder which could have resulted in the transaction failing to go through at the 11th hour! With some quick thinking we were able to help resolve the issue so they were able to finally sign on the morning of the last day, which saved the acquisition.

The Freehold Collective looked after the freeholder group of Langton Priory and we’re pleased to say that they’re going from strength to strength – something that would not have been possible without our unique support for freeholders once they are in ownership of their freehold.

Following acquisition, new owners often have to get on with it but, for our clients, we stay around. Our support, advice and guidance doesn’t stop and we will continue to work alongside freeholders to implement things like correct building maintenance, good insurance rates, and all other matters for as long as they need us.

The Overall Langton Priory Result

The result for Langton Priory was another fantastic success for us at the Freehold Collective and it resulted in 12 happy and onboard freeholders. Working under difficult conditions was not easy, but we managed leaseholder expectations to deliver a fantastic settlement for a cost we could never have dreamt of.

Our efforts and work ultimately resulted in huge praise. One personal touch for us was the news that we saved one resident from sleepless nights because she was so worried about the acquisition, and to this day one of the freeholders regularly acts as verbal recommendation for new clients. They are fantastic clients and we were so glad to have delivered them success.

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