There are two types of enfranchisement claims, one for flats which is known as collective enfranchisement and another for houses, known as individual enfranchisement.

Flats

Collective enfranchisement is the lessees' collective statutory right to compulsorily purchase the freehold of the building upon paying a market price as compensation to the landlord. The lessees need to meet certain qualifying criteria. The basic test is that the qualifying leaseholders must have a long lease (i.e. not less than 21 years) of a flat and must represent not less than half the flats in the building (which must have not less than two flats). Additionally at least two-thirds of the flats must be leasehold, and not more than 25% of the building must be non-residential. There are also other restrictions for certain types of landlord and for resident landlords.

The process is started by serving a formal notice on the landlord subsequently. A substantial amount of work needs to be carried out before the process is started. We can advise on eligibility and on getting the process started. Before starting the formal process, it is also advisable for lessees to appoint a valuer to advise on price and prepare worst and best case price scenarios at the outset.

The advantage of enfranchisement to lessees is that they will acquire outright ownership of the building and will have a say in the control and management of their block. They can appoint their own managing agents and grant themselves new long leases on favourable terms which can enhance the value of their property.

Houses

The lessee of a house also has similar rights and the process is similar. The basic qualifying test is that the lessee must have a long lease of a house (i.e. not less than 21 years) and they must have owned the house for at least two years. However, this can be circumvented on the sale of the property as it is a right that can be passed on by a seller to a buyer. Again the lessee will need to instruct a valuer at an early stage to advise on the best and worst case outcomes. The advantage is that the lessee will acquire outright ownership of the building and more control over his property.

We have extensive experience and expertise in this field. We also have a large property department to help prepare the documentation. We have an excellent relationship with firms of leading surveyors and Counsels who specialise in this area. We are conveniently situated close to Chancery Lane in Central London, close to the appropriate Courts, Counsel's chambers and specialist property tribunals.

Costs?

For collective enfranchisement (i.e. blocks of flats) we offer a fixed fee service, usually being about £650 per qualifying flat (to cover the period from getting started to completing the transaction). This is on the basis that everything can be agreed with the landlord. If dispute does arise (usually over the price) then the case will have to be referred to a specialist property tribunal called the Leasehold Valuation Tribunal. In that case we will revert to our usual hourly charging structure and we can provide details of these charges.