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News on the Block’s regular columnist (and one of the original campaigners back in 1993) adds her own unique take on the enfranchisement landscape and recalls the often difficult path that has led us to where we are today. Leaseholders’ rights began in 1993 – but did not bring the desired benefits for a further decade. Before 1993 there was a strictly limited opportunity for the owners of houses and flats, whose landlord was selling the freehold anyway, to a “right of first refusal”. But this feeble law,

Taking control – although the leaseholders often own the majority of the equity in the building (in the value of their flats), the freeholder controls all aspects of its management, maintenance and future. Buying out this minority share places the leaseholders in full management control, to save costs, improve services and manage the building as they choose. Renewing the leases – in acquiring the freehold the leaseholders gain the power to extend the term of their leases, ideally to 999 years. The valuat

Alastair Stimson, Associate in Savills’ Residential Valuation and Litigation Support Department and enfranchisement expert, introduces the subject and explains why it has never been more important to consider purchasing your freehold. Ignoring the fact that you own a leasehold property, a diminishing interest, could cost you dearly. After all, you probably spend a significant amount of time managing and tracking your other investments; however property is likely to be the most valuable of them all and i

Before you can successfully file for enfranchisement, it is essential you do your research to make sure your block is eligible. Nic Shulman deciphers between those that can, and those that can’t. Collective enfranchisement was first introduced by the Leasehold Reform, Housing and Urban Development Act 1993 and it is the absolute right of leaseholders of 50 per cent or more of the flats in a block to buy the freehold of the building. Collective enfranchisement gives flat owners in a building total contro

The Leasehold Reform, Housing and Urban Development Act 1993 (the 1993 Act) gave leasehold owners of flats two important new rights. The first allows a majority of tenants to join together to buy the freehold, exercising the right to collective enfranchisement. The second allows an individual tenant the right to a new lease, for a term 90 years longer than the existing one at a peppercorn rent. In order to decide which route to follow a tenant will first have to assess whether they qualify for a collectiv

Justin Bennett, director of the chartered surveyor firm Langley Byers Bennett, emphasises the importance of pulling together and making sure this vital stage in the process is carried out without complication. You have a flat and you want to protect its value and gain better control of your destiny. But, there are pitfalls and consequences for the unwary. The participation agreement document sets out the terms under which you (collectively) buy your freehold (enfranchise). The agreement deals with the

Anna Favre of Pemberton Greenish recalls how one recent landmark case has outlined the prerequisites to something many already thought they knew – what constitutes a house? Most people have a reasonably clear idea of what constitutes a house and yet the interpretation of this beguilingly simple word has led to some leading case law over the years. The latest offering in this long line of litigation is from the House of Lords in the case of Boss Holdings Ltd. v Grosvenor West End Properties and others (2

Few areas of property law have generated as much opposition or debate as enfranchisement. Referring to the compulsory purchase of a landlord’s estate, it is unique in being the only legal means by which a tenant can do that anywhere in the world. Of course, London is unique in the way that its richest areas are owned by aristocratic landlords, but in the 40 years following its introduction, what effect has it had on the freeholders?   Compulsory purchase has certainly made a dent in many of the country

Kenneth Munro is one of the lading barristers in leasehold enfranchisement and was Counsel for the Church Commissioners in the Blendcrown case, for two of the three landlords in Sportelli and for the landlord in Hildron judgement. Here he provides an update post Sportelli. Everyone with a practice involving enfranchisement, whether of houses under the Leasehold Reform Act 1967 or flats under the Leasehold Housing and Urban Redevelopment Act 1993 will have heard of the decision of the Lands Tribunal in C

Anyone acquiring the freehold to their house under the Leasehold Reform Act 1967 or claiming a lease extension for their flat or exercising their rights to collective enfranchisement under the Leasehold Reform Housing and Urban Development Act 1993 will need to think about two taxes in particular, stamp duty land tax (SDLT) and capital gains tax (CGT). Martin Codd of Dawsons LLP reports. SDLT is imposed on a sliding scale starting at 1% of the purchase price on the purchase of an interest in residential

Alex Greenslade writes that a flat owner does not need to know about lease length, freeholders, reversions and marriage values… until the day they receive a letter informing them of their right of first refusal or a neighbour says, “Hey, why don’t we buy the block’s freehold?” Here I will give you a few useful tips to help choose the people to make the process of extending your lease, buying your share of freehold or exercising your right to manage. While many solicitors will be technically qualified

Phillip Rainey of Tanfield Chambers emphasises the importance of seeking professional advice, and outlines the role a barrister should play in the enfranchisement of a block. The third member of the team of professionals at your disposal is the Barrister (Counsel). Counsel can “add value” in specialist advice and specialist advocacy skills. Straightforward or lower value enfranchisement or lease extension claims may not require the services of Counsel, but property values in the Prime Central London a