Enfranchisement
Collective enfranchisement is a process where a number of leaseholders in a block of flats act together to collectively purchase their freehold interest under the Leasehold Reform, Housing and Urban Development Act 1993.
We have a wealth of experience guiding both landlords and tenants through this complex and technical area of law. We are highly recommended in the Legal 500 in this niche area of law.
The Leasehold Reform, Housing and Urban Development Act 1993 provides a collective group of qualifying tenants in the block of flats with the right to collectively enfranchise the freehold of their block, i.e. purchase the freehold interest for a premium.
Provided at least 50% of the flats in the building, who are qualifying tenants, participate and the building qualifies the landlord cannot refuse, save for limited exceptions.
The procedure is complex and the correct notice needs to be served on the landlord, the specialist team at RFB Legal has extensive experience in guiding landlords and tenants through the process.
Procedure
- - You will need to obtain a valuation report and a plan which identifies the premises, appurtenant land and details of any property over which it is proposed that rights should be granted
- - We will check your entitlement to enfranchise
- - We will advise in relation to setting up a nominee purchaser company / entering a participation agreement, if appropriate
- - We will prepare the Section 13 Notice, serve the same on the competent landlord and all other relevant parties, and respond to subsequent notices
- - Registration of the Section 13 Notice at the Land Registry
- - Review the landlord’s counter-notice
- - Negotiate and agree terms of acquisition
- - Act on your behalf in relation to any proceedings before the First-Tier Tribunal, Upper Tribunal, County Court, and any appeals
- - You will need to obtain a valuation report
- - We will check the validity of the Tenants Notice
- - We will prepare and serve the counter-notice and advise as to the land claimed and any lease backs.
- - Negotiate and agree the terms of the acquisition
- - Act on your behalf in relation to any proceedings before the First-Tier Tribunal, Upper Tribunal, County Court, and any appeals
If you are a landlord who has received a Section 13 Notice from the leaseholders or a group of leaseholders who wish to exercise the right to collectively enfranchise, please contact enfranchisement@rfblegal.co.uk.
We have also prepared a note on the procedure involved if you require further information.
- - Acting for landlords from receipt of Section 13 Notice to conclusion
- - Acting for tenant from the preparation of Section 13 Notice to the conclusion, including setting up nominee companies, preparing participation agreements and the plan
- - Advising developers in relation to how to avoid the risk of enfranchisement as well as the potential impact of the regime on mixed-use properties.
- - Advising and acting in the First Tier, Upper Tribunal, County Court, and any appeals on behalf of landlords or tenants
- - Acting on behalf of tenants in relation to claims for vesting orders where the landlord is absent or dissolved.
Key Contacts
David Burns
Senior Litigation Partner
Ben Frost
Litigation Partner
