Featured Articles

Get the answers to your questions and stay up to date about apartment building management with our featured articles and NOTB guides, on topics such as service charges, right to manage, buying your freehold, major works, building insurance and other issues about blocks of flats.

Lease Extension or Enfranchisement?

A lease extension which adds 90 years to your lease should be the most straightforward way to increase the term and protect the value of your flat which otherwise is a wasting asset. Over time, the premium payable to extend the lease will increase as the lease shortens. Unfortunately, many people only think of extending their lease when they are planning to sell their flat or, worse still, when their flat is under offer. Purchasers’ solicitors increasingly advise their clients to obtain a lease extension

Post - Enfranchisement action points

Now the collective purchase of your freehold is complete; the hard work does not stop. Here is a list of post-enfranchisement action points:   a. Service charges – Have all service charges payable to the outgoing freeholder been cleared? Have arrangements for service charge funds to be transferred been made? b. Notifying all leaseholders – All leaseholders should be informed of the successful completion, whether or not they participated in the freehold purchase. c.Bank accounts – All bank accoun

Collective enfranchisement - Don’t forget the bit on the side!

Approaching the cost of your freehold purchase on the basis of a collective amount based on the number of flats in the building may give a fairly accurate figure where there is little additional land, such as flats in a converted terraced house. This is not always the case where the building sits in its own grounds. The freeholder will often seek an additional amount for this area - “the bit on the side” - which could be quite substantial. The 1993 Act gives qualifying flat owners the right to purchas

Sloane Stanley Estate v Carey-Morgan - A never ending story 

The recent upper tribunal (lands chamber) decision in the case of Sloane Stanley Estate v Carey-Morgan concerned an appeal from the Leasehold Valuation Tribunal on a collective claim under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993 and provides helpful guidance on several topical enfranchisement issues. The valuation date of the claim was 24 September 2007 and so years had elapsed by the time the Upper Tribunal considered the matter. Vale Court is a small purpose-built

Enfranchisement Case Law

The on-going problem of what constitutes a house under the 1967 Act is keeping the courts busy. Practitioners await the Supreme Court’s decision in Hosebay v Day; Lexgorge v Howard de Walden this year when it is hoped the Supreme Court will give a definitive ruling. Although a number of house claims are on hold pending the Hosebay outcome, one recently slipped through. In that case, HHJ Hazel Marshal QC decided a purpose built mansion block containing eight self contained flats and three lock up shops c

Covenants in Enfranchisement Transfers

One Significant area of contention in enfranchisement is the question of which covenants may be included in the Transfer of a freehold, where a leaseholder exercises his right to acquire the freehold of his house under the Leasehold Reform Act 1967. Leasehold covenants include an obligation to pay ground rent; various restrictions on the use and enjoyment of their property and possibly the recovery of a service charge. Often, leasehold house owners see enfranchisement as a means of escaping these obliga

Lease Case Study - The "Ping-Pong" Freehold

This interesting case involves a block of eleven purpose-built flats. Unhappy with their Landlord, a group of 5 Tenants investigated the possibility of enfranchising the block and acquiring the freehold. After hard work on the part of the Tenants, a majority was found having persuaded one initially reluctant lessee to participate, creating a majority. The original enfranchisement proceeded and the freehold interest in the property passed to the new formed company with six participating Tenants and five

Don’t let the freehold get sold over your head

Although tenants are becoming increasingly aware of their rights to collectively buy their freehold, it seems to be a well kept secret amongst the tenant world that there is an alternative procedure for doing so, when a landlord decides to sell. Failure by a landlord to provide tenants with the right to first refusal and follow the procedures in the Landlord and Tenant Act 1987 (“the 1987 Act”) could be detrimental and in some cases, result in a lucky group of tenants picking up a bargain. The detail of

Should I be offered the Right to Buy the freehold of my building?

The Landlord & Tenant Act 1987 (as amended) can give the leaseholders, and some tenants, of a building the Right of First Refusal (RFR) when the Landlord is selling the freehold. It should be emphasised that the right is not an individual right to buy the freehold of your flat, but a collective right in respect of the whole building. The right of first refusal only applies if the building qualifies. For the building to qualify:   • It must contain at least two flats • No more than 50% of the build

Collective Enfranchisement - Does your building qualify?

Once leaseholders have the desire to pursue the collective enfranchisement process, on occasion, valuable time spent on background investigations into title set up, qualifying criteria etc is often overlooked. The importance of carrying out a thorough preliminary investigation and assessment of the feasibility of a potential collective enfranchisement before service of the initial notice of claim can never be overstated. An area where time and effort should be spent on pre-investigations is establishing

Alep 2011 seasonal drinks reception

Over 120 members and non-members attended the ALEP Seasonal Drinks Reception in December 2011 for a festive evening of networking with their enfranchisement colleagues. Alex Greenslade, Honorary Secretary, welcomed everyone to the event and announced the forthcoming introduction of barrister membership to ALEP, which will be launched in January. Damian Greenish, Honorary President, formally thanked the ALEP staff and committee for their hard work in managing ALEP’s 2011 events and activities, and looked a

Enfranchisement Feature 2012 

Your essential guide to buying your freehold or extending your lease.  Your essential guide to buying your freehold or extending your lease. Independent industry practitioners offer some advice in our comprehensive pull out and keep supplement about the enfranchisement process. Some of the articles in this feature include: Alex Greenslade explains why now is the time to check the length of your lease  Yashmin Mistry considers whether preliminary investigations are worthwhile in enfranchisement ca

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