‘Collective Enfranchisement’ is a legal term used for group of leaseholders (flat owners) proposing to buy the freehold of their building in accordance with a piece of law which entitles them to do this.
Buying the freehold from your landlord can be done privately, by negotiating with the freeholder, which we can assist you with, but if the landlord does not want to sell the freehold to you voluntarily the law provides that a group of leaseholders (meeting the necessary eligibility requirements) the ability to compel the landlord to sell the freehold to them.
You will need to satisfy a number of complex criteria in order to proceed to acquire the freehold – we will need to give you expert advice on this however, below are some of the main points to consider:
• There must be at least two flats in the building
• At least two thirds of the flats should be let to “qualifying leaseholders” –essentially this is a long lease at a low ground rent, but some leaseholders may still be excluded, so we would check this for you as part of your instructions to act for you
• At least 50% of the qualifying leaseholders must be prepared to join in acquiring the freehold
• No more than 25% of the floor area has commercial use
The law relating to Collective Enfranchisement is very complex and full of pitfalls; you should seek the expert advice of a solicitor experienced in leasehold enfranchisement.
Please contact Laura Russell to discuss your particular circumstances further and obtain our collective enfranchisement information sheet for further information on the statutory process and costs involved.