£15 million enfranchisement claim a complete misunderstanding

Recent newspaper reports have mis-described the acquisition of the freehold of the block of flats known as South Acre Parks from Cambridge University by a group of 41 leaseholders as the exploitation of a “legal loophole”.

Although the total market value of the flats is estimated to be in the region of £15 million, the flats were in fact neither owned, nor originally sold by Cambridge University. Mark Hallam, a Partner at Carter Jonas LLP, who acted on behalf of Cambridge University in the matter explained, “The previous newspaper reports demonstrate a complete misunderstanding of the circumstances. The University’s interest was only the reversionary value,  which, in this instance, was more than 80 years away. This is not an exploitation of a legal loophole, but simply a collective enfranchisement under the Leasehold Reform Housing & Urban Development Act 1993 where leaseholders of flats may be entitled to purchase the freehold. This was not even a case where marriage value had to be taken into account. In the end a fair premium was agreed strictly under the terms of the Act, representing the value of what was to be transferred to the leaseholders.” Mark Hallam was recently named Regional Surveyor of the Year at the Enfranchisement Awards 2009.