Collective Enfranchisement–
the Legal Right
Nilloosha Ponnuthurai
(Solicitor/Legal Advisor)
Leasehold Advisory Service
The Right to Enfranchise
If qualify and invoke procedure, Compel Ld
to sell
A fair price
Determined by LVT
Introduced by Leasehold Reform and
Urban Development Act 1993, amended by
2002 Act
Qualifying premises
A building (or self-contained part of a
building) comprising 2 or more flats
At least two-thirds of the flats on long
leases
No more than 25% non-residential
Qualifying tenants
Long leaseholder (lease originally granted for more than 21
years)
Own no more than two flats
No residence qualification
Participating tenants must own at least half the flats in the
building, if only two flats both must participate
Choice of Enfranchising:
How this applies to Moormead Estate:
Part of a Building ; i.e. 2,4, 6 etc until end of row.
Or Whole Building
Moormead Estate
Choice of Enfranchising:
Part of a Building ; i.e. 2,4, 6 etc until end
of row.
Or
Or Whole Building.
Each Claim require separate S.13 Notice
Cannot Enfranchise more then One building.
(one freehold title of estate irrelevant)
Fixing the price
Valuation – Surveyor v Legal –Solicitor
Valuation ate Fixed on Service of Legal Notice
Valuation Principles:
The term (capitalising the rent)
The reversion (the landlord’s expectation of possession)
The marriage value (the uplift in the value of the flat)
Valuation:
LE
Freehold – part/whole of building.
- Apportion total by no of participants
(MV, take surveyors advice)
Procedure
The Vehicle
A Company (RTE Co not in force yet)
Trust (no more then 4), Trust Instrument.
Lease still apply.
Assign to Purchasers
No legal right to insist on participation – join now?
Participation agreement (?)
Obtain a valuation
Serve Initial Notice on landlord(s)
Procedure…
Landlord(s) must respond with counter-
notice- 2m
Ld reasonable cost payable – solicitor &
surveyor
Application to LVT within six months
Not liable to pay Ld’s cost re LVT,
must bear own cost –