Government U-Turn on Enfranchisement

The government wants  to drop the expected implementation of Right to Enfranchisement (RTE) companies, citing “practical
difficulties”. RTE companies were to be implemented following Sections 121-124 of the Commonhold and Leasehold Reform Act 2002. They would have required leaseholders to purchase the freehold of the building containing their flats through an RTE company, with membership being open to all qualifying leaseholders. However, upon further consideration, the Government has now realised that the leaseholders “right to participate” in an enfranchisement, which was the intention behind the legislation, cannot be met. The Government is now seeking responses to a consultation about the proposed non-implementation by 3rd August 2009.