Enfranchisement is a transaction in which a leaseholder extends or purchases the lease connected to the freehold of their property. The right to do so was provided by the 1967 Leasehold Reform Act and amended in 2002 under the Commonhold and Leasehold Reform Act.
If you are living in the capital you may want to contact a London law firm for advice. It’s best to use a London law firm that specialises in this area of the law.
How to Apply For Enfranchisement When Acquiring the Freehold of a House
The way to begin this process is by serving the freeholder or any intermediate landlord. The service creates a contractual agreement between the parties to both grant and accept freehold transfer. The landlord will have two months from the date of service to offer counter-terms; otherwise the tenant’s proposal will bind them. The procedure for buying the freehold is clearly set out in the 1967 Act.
Who Qualifies for Enfranchisement?
There are certain criteria which both the leaseholder and property must meet to qualify for enfranchisement. These are set out in the Act you are applying under. As a leaseholder you must hold a lease with a minimum original term of 21 years or one which contains a right to renew. You must also have been the leaseholder for at least two years before you make an application.
What Types Of Property Qualify for Enfranchisement?
The property must be a one which can reasonably be considered to qualify as a house. If the building has been divided into flats, you can still apply provided you possess the lease for the whole house. Even buildings with a commercial unit in them can qualify, such as one with a shop below and living accommodation above.
What Is Collective Enfranchisement?
If a building contains multiple apartments or flats, then collective enfranchisement comes into play. Under legislation which came into effect in 1993, this right was created for leaseholders of buildings or parts thereof which contain flats to combine to collectively buy the freehold.
