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Leasehold Enfranchisement For Tenants FAQ
Can I purchase the freehold of my building?
Leaseholders can only enfranchise if both they and their building qualify. Put simply, the building must contain two or more flats and at least two thirds of those flats must be held on long leases. At least 50% of the qualifying leaseholders must participate in the enfranchisement. It is therefore now possible to improve the value of your flat, and even take control of the management of the whole building in this way.
What are the benefits?
Owning the freehold usually enables you to be in full control of your Lease's terms. Therefore, as a side-effect of owning, you could extend your lease to 999 years without needing to pay an additional premium. If your lease has less than 70 years to run, then it will be difficult to sell as most banks will not lend to potential buyers on a short lease. It is therefore important to note, before you reach this stage, as soon as the number of years left on your lease drops below 80, the cost of extending it will start to rise more steeply. By purchasing the freehold, this may be more economically advantageous for you.
We can give you all the advice and assistance you require in order to exercise the right to collectively enfranchise or extend your lease. We will give you an estimate of the costs involved at the outset so that you are fully aware of your position before you start the process.
If you are interested in the exercising the right to enfranchise or require any advice on landlord and tenant matters, please contact Daniel Tang for a free initial informal discussion on 0208 290 7373. Alternatively, please email Daniel on firstname.lastname@example.org