How do you qualify for enfranchisement? This question is often asked by leaseholders looking to buy the freehold of their property or extend their lease. Let’s break down the key requirements and processes involved.
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How do you qualify for enfranchisement?
Enfranchisement is a legal right that allows leaseholders to purchase the freehold of their property or extend their lease. However, not everyone qualifies for this right.
Qualifying as a leaseholder
To qualify for enfranchisement, you must be a long leaseholder. This means:
• You have a lease that was originally granted for more than 21 years
• You’ve owned the lease for at least two years
• Your lease is for a residential property
It’s worth noting that if you own more than two flats in the building, you won’t qualify as a leaseholder for enfranchisement purposes.
How do I determine if my building qualifies for enfranchisement?
The property itself must also meet certain criteria:
- It must be a self-contained building or part of a building
- It must contain at least two flats
- At least two-thirds of the flats must be owned by qualifying tenants
- No more than 25% of the internal floor area can be used for non-residential purposes
Collective enfranchisement
For collective enfranchisement, where a group of leaseholders come together to buy the freehold:
| Requirement | Details |
|---|---|
| Minimum participation | At least 50% of qualifying tenants must take part |
| Building type | Can be a purpose-built block or a converted house |
| Lease terms | Original leases must be for more than 21 years |
Exceptions
There are some exceptions where enfranchisement rights don’t apply:
• Properties owned by the National Trust
• Buildings within cathedral precincts
• Crown properties (although the Crown usually acts as if the legislation applies)
Tips for a smooth enfranchisement process
• Get professional advice early on from a solicitor experienced in enfranchisement
• Ensure all participating leaseholders are committed before starting the process
• Be prepared for potential delays and complications
• Keep good records of all communications and decisions
Remember, while enfranchisement can be complex, it can also bring significant benefits such as greater control over your property and potentially increased property value.
What are the key steps involved in the collective enfranchisement process?
The collective enfranchisement process involves several key steps:
- Check eligibility – Ensure at least 50% of qualifying tenants participate
- Appoint professionals – Hire a solicitor and surveyor experienced in enfranchisement
- Form a company – Create a nominee purchaser to acquire the freehold
- Serve Initial Notice – Formally notify the freeholder of your intention to buy
- Negotiate price – Agree on a purchase price or apply to tribunal if needed
- Complete the purchase – Transfer the freehold and grant new leases
This process typically takes 6-12 months to complete.
What role does a nominee purchaser play in enfranchisement?
The nominee purchaser plays a vital role in collective enfranchisement:
• It’s usually a limited company set up by the participating leaseholders
• Acts as the legal entity that will acquire and own the freehold
• Named in the Initial Notice served on the freeholder
• Becomes the new landlord once the purchase completes
• Responsible for managing the building and granting new leases
Using a nominee purchaser company simplifies the process and avoids complications that can arise from individual leaseholders jointly owning the freehold.
What are the common challenges faced during enfranchisement?
Common challenges in the enfranchisement process include:• Getting enough leaseholders to participate (at least 50% required)
• Raising funds for the purchase and professional fees
• Disputes over the purchase price with the freeholder
• Missing deadlines in the statutory timetable
• Dealing with non-participating leaseholders
• Managing the building post-acquisition
Good communication among leaseholders and professional advice from experienced solicitors and surveyors can help overcome these hurdles. It’s also wise to plan for potential delays and have contingency funds available.
How Property Saviour can help with enfranchisement challenges?
At Property Saviour, we understand that the enfranchisement process can be complex and time-consuming. If you’re a leaseholder facing difficulties with enfranchisement, we offer two flexible solutions:
- Sell your property as-is: We can purchase your leasehold property quickly, without the need for you to go through the enfranchisement process.
- Sell after freehold purchase: If you’ve already started the enfranchisement process, we can buy your property once you’ve acquired the freehold, potentially increasing its value.
Our team of experts can guide you through either option, ensuring a smooth and hassle-free sale. We offer fair prices and can complete the purchase in as little as 10 days.
Don’t let enfranchisement challenges hold you back. Get in touch with Property Saviour today for a no-obligation chat about how we can help you move forward.
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