Leasehold Enfranchisement

Leasehold Enfranchisement

Owners of leasehold flats have the right to group together and collectively purchase the freehold of their building, this is called leasehold enfranchisement.  This right is subject to certain conditions which include:

  • at least two thirds of the leases must be let to qualifying tenants;
  • the building must be self contained with no more than 25% being non residential (i.e. common parts); and
  • at least 50% of the leaseholders must participate in the enfranchisement

Exercising the right to purchase the freehold is more expensive than exercising the right to manage which is also available to tenants, as the tenants must compensate the landlord for it’s loss of the freehold interest.  The actual amount the tenants have to pay to the freeholder depends on the amount of ground rent payable, the number of flats in the building and the length of term remaining on the leases.  As with lease extensions, if any of the leases at the building have less than 80 years remaining on the term, the cost will increase.

Once the flat owners have bought the freehold, they can have full control and management of the building and the service charge.  Those that have participated are able to grant themselves lease extensions, removing any ground rent liability for no premium.  Furthermore, they can share the premiums that any non-participating tenants pay should they apply to extend their leases.

Please contact a member of our team if you would like more information.

Blog Posts

Is your fulfilment business under threat?

07/08/2017

The Fulfilment House Due Diligence Scheme - the new weapon in the war on…

Read More
Upcoming Events

Gotelee Coffee Morning, Melton

12/10/2017

Join us again for another coffee morning, this time at our Melton office -…

Read More
News Posts

An icy warning for drivers defrosting their cars

14/11/2017

Suffolk has woken with a shiver this week as winter edges nearer and temperatures…

Read More

Testimonials

"Pat Smith's efficient, calm, most capable, helpful and friendly manner."

- AG

"The patience and understanding from a sincere Miss Holland."

- AD

"Prompt, efficient and knowledgeable service"

- KB

"Clarity, plenty of information provided and responses in a timely manner"

- AG

"Mrs Tracey Hammond is very professional and helpful, efficient and very friendly"

- KS

"Judy Barfoot's approachable and knowledgeable professionalism was second to none"

- CM & SM

"Ms Stuart's friendly but direct approach. I always felt understood"

- JR

"Very flexible and accommodating, very positive & clearly explained my options"

- SD

"Friendly and approachable - using language I could understand"

- CV

"Efficient, polite, friendly service with very helpful advice"

- JA

Please select preferred method of contact

* We will only contact you by telephone if you select this as primary form of contact.