Leasehold Enfranchisement Solicitors
What is Leasehold Enfranchisement? Understanding the Leasehold Enfranchisement Process
Leasehold enfranchisement is when the qualifying leaseholders of a block of residential flats collectively come together and serve notice on their freeholder to purchase the freehold.
Legal Framework Governing Leasehold Enfranchisement
The Leasehold reform Housing and Urban Development Act 1993 governs the legal framework for leasehold enfranchisement.
Types of Leasehold Enfranchisement
Statutory enfranchisement
Under the Leasehold Reform, Housing and Urban Development Act 1993 statutory enfranchisement is where leaseholders who qualify come together collectively and serve notice on the freeholder informing them of their intention to purchase the freehold under statute. There are very limited circumstances when the freeholder can refuse to sell them the freehold property under statutory enfranchisement.
Voluntary enfranchisement
This is where the leaseholders and freeholders agree for the freeholder to sell the freehold to the collective leaseholders.
Collective enfranchisement
This is another word for statutory enfranchisement or voluntary enfranchisement, and it means where the leaseholders come together to purchase the freehold.
Statutory Enfranchisement Claims Explained
Definition and process
Under the Leasehold Reform, Housing and Urban Development Act 1993 leaseholders can collectively come together to purchase the freehold of the building. The process is governed by the Act and there are limited circumstances where the freehold can refuse the request.
Benefits of Statutory enfranchisement
The leaseholders will take control of the freehold in its entirety once they acquire the Freehold via enfranchisement. If the leaseholders statutory enfranchise then there is no need to serve right of first refusal notices on all of the leaseholders in order for them to buy the freehold.
Further to this the terms of the transfer need to comply with the Leasehold Reform Housing and Urban Development Act 1993 and there can be negotiations on the premium payable
Voluntary Enfranchisement Claims Explained
Definition and process
This is where the freehold agrees to sell the freehold to the collective leaseholders. This can be done informally by way of transfer to the collective leaseholders (usually a company is set up).
Benefits of Voluntary enfranchisement
This is normally a shorter process than a statutory enfranchisement and the costs involved are lower.
Collective Enfranchisement Claims Explained
Definition and process
Under the Leasehold Reform, Housing and Urban Development Act 1993 leaseholders can collectively come together to purchase the freehold of the building. The process is governed by the Act and there are limited circumstances where the freehold can refuse.
Benefits of collective enfranchisement
The leaseholders will take control of the freehold in its entirety. If the leaseholders statutory enfranchise then there is no need to serve right of first refusal notices on all of the leaseholders in order for them to buy the freehold.
Commercial Property Enquiry
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The Role of Leasehold Enfranchisement Solicitors
The role of the solicitor is to agree the transfer of the freehold to the leaseholders. They will then register the same at HM Land Registry in the company name which has been set up by the collective leaseholders.
Benefits of Employing a Leasehold Enfranchisement Solicitor
Enfranchisement can be a complex procedure and without the guidance of a specialist solicitor it is easy for things to go wrong. Further to this, you will need a solicitor in order to register your interest in the freehold once the transfer has taken place.
Qualifications and Expertise of Mullis & Peake Leasehold Enfranchisement Solicitors
Shelley Fitzpatrick is the resident solicitor at Mullis & Peake LLP who specialises in leasehold enfranchisement. She works solely in this area, along with lease extensions and has done so for several years. Leasehold enfranchisement is a niche area and whilst many solicitors do these claims along side other work, there are few within the Essex area that specialise solely in this.
Tenants' Right to Enfranchise: The Legal Framework
The Tenants’ Rights to enfranchisement in a block of flats is currently governed by the Leasehold Reform Housing and Urban Development Act 1993.
Negotiating with Landlords: The Solicitor's Approach
The solicitor’s role in negotiations with the landlord is to agree the form of transfer and any leasebacks which have been agreed. The Premium is negotiated by a specialist surveyor.
Leasehold Enfranchisement and Lease Extensions
Once leaseholders complete the enfranchisement process they are free to grant lease extensions to any leaseholders in the block. For those leaseholders who did not partake in the enfranchisement process and wish to extend their leases a premium will be payable to enfranchisement company and those who own shares will receive a share of the premium payable.
Common Challenges in Leasehold Enfranchisement
Often the biggest challenges leaseholders face in enfranchisement is organising the lease holders to exercise the Right. Much of the work takes place prior to the initial notice being served by way of invitations being sent to all leaseholders offer them the right to participate and then participation agreements being entered into.
Leasehold Enfranchisement Timelines and Deadlines
Once the initial notice is served on the Freeholder and any Intermediate Landlords they will have a minimum time frame to respond of two months. Once a response is received by way of counter notice there will be six months from the date of the counternotice for parties to negotiation on all terms of acquisition which will include the form of transfer and the premium.
Frequently asked questions
Mullis & Peake have a specialist team in lease extension ready to help you. Contact us online today or call us on 01708 784000.
Alternatively, request a call back to have one of our experts contact you at a time that suits.
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Denise is a Member at Mullis & Peake and specialises in commercial and company work
