Legal Tool Kit - How to Enfranchise

To exercise the right to enfranchise, you must be a qualifying tenant. In general terms this means your lease was originally granted for a term of 21 years or longer; it does not matter if the lease has less than 21 years left to run (‘a long lease’). Once you have worked out whether or not you qualify, the next stage is to work out whether or not the building qualifies.

In general, your building will qualify if:

*It has two or more flats (if there are only two flats in the building, both tenants must participate)
 
*At least two thirds of all the flats are held on long leases; and

*Not more than 25% of the internal floor area of the building (excluding common parts) is used for non-residential purposes.

How to enfranchise

Because enfranchisement is a group action, you and your neighbours will also need to ensure the number of leaseholder participating in the purpose must be equal to half the number of flats in the building i.e. in a block of 18 flats, 12 flats must be held by long leaseholders and at least nine of them must participate in the enfranchisement process.

The Process

The enfranchisement process is started when the landlord is first given notice by the nominee purchaser of the wish to exercise the right to enfranchise. This often is called the initial notice and must contain certain information. The landlord is then invited to give his counter-notice by the date set out in the initial notice. The landlord must state whether or not he accepts the terms or suggest different ones and must also state reasons, if applicable, for not agreeing there is right to enfranchise.

The nominee purchaser and landlord are then given time to agree the terms of the acquisition. If terms cannot be agreed between the parties, either party may apply to the Leasehold Valuation Tribunal for the mater to be determined.

During the process there are important time limits both parties must adhere to and the implications of missing the deadlines can be disastrous. Whilst the process on the face of it may appear to be relatively straightforward, legal and professional valuation advice will almost certainly be needed.

For further information regarding this article, contact Roger Hardwick, Head of Leasehold Enfranchisement, Brethertons Solicitors.