Leasehold Enfranchisement
ADVISING LEASEHOLDERS AND FREEHOLDERS
Leasehold Enfranchisement
Enfranchisement opportunities & challenges in residential property
Leasehold enfranchisement are the rights available to owners of leasehold flats and leasehold houses, whose properties are held on long’ leases, having been originally granted for a term of over 21 years. The rights can either be extending the term of the lease or acquiring the freehold interest.
An agreement for the extension of a lease or the freehold acquisition can be reached between the parties. A landlord may willing to grant a lease extension (effectively a new longer lease) or sell the freehold without the tenants needing to make a statutory claim. This approach doesn’t provide the protection of the statutory framework to give a structure the negotiations.
Call 01271 386 306
Peninsula Management | Chartered Surveyors
Landlords wanting to sell or otherwise dispose of their interest in a predominantly residential building may be restricted by the right of first refusal provisions under this Act. This legislation generally requires that the landlord must first offer their interest to the qualifying tenants in the building. To not do this is a criminal offence.
Owners of leasehold houses benefit from leasehold enfranchisement rights under this Act. Qualifying tenants given the right to claim a lease extension or purchase the freehold of the property.
Qualifying tenants can still exercising their enfranchisement rights even if their landlord cannot be found. Whilst a complicated process to prove the absence, exercise rights by application to the courts and then the First-Tier Tribunal to determine the price which will be paid into Court.
Tenants are required own their leasehold flats of apartments for at least two years before being able to make a statutory lease extension claim. The assignment of lease extension claims on the sale of a property can be made, which avoids having to wait two-years.
A group of tenants in blocks of flats can jointly claim the freehold of their building, if meeting the minimum qualifying criteria. The group approach can be challenging owing to the organisation, communication and ensuring that the appropriate procedure is followed.
Owners of leasehold flats have a qualified right to a 90-year lease extension at a peppercorn ground rent on making the payment of a premium. Both tenants and landlords should take professional advice when involved in these matters; the consequences are significant.
Where? In theory anywhere in England and Wales.
Based near Barnstaple we cover the whole of the North Devon region in addition to Exeter, Tiverton, Torquay, Plymouth areas, Cornwall and Somerset including Bristol.
We are always happy to discuss your own Right To Manage situation wherever you are in England and Wales. Please feel free to call us 01271 386 306
“A friendly, professional service for your all of your property matters.”
Rupert Hambly | Director | Peninsula Management