Collective Enfranchisement pre-requisites

[DM25]

Hi,

I own a flat in a block of seven flats and along with the other leaseholders we are considering the purchase of the Freehold. I understand that at least 50% of the lessees have to apply, which is covered, but do we have to be living in our flats or is it enough that we own the flats, ie can leaseholders purchase the freehold without being tenants?

Many thanks for any feedback
Dan

[jeffrey]

Hi,

I own a flat in a block of seven flats and along with the other leaseholders we are considering the purchase of the Freehold. I understand that at least 50% of the lessees have to apply, which is covered, but do we have to be living in our flats or is it enough that we own the flats, ie can leaseholders purchase the freehold without being tenants?

Many thanks for any feedback
Dan

There are now very few pre-requisites. You do not need to be owner-occupiers nor do you need to have owned for > 2yrs.
As long-leaseholders of residential flats, you have collective enfranchisement rights under:
a. Landlord and Tenant Act 1987; and
b. Leasehold Reform Housing and Urban Development Act 1993.
The % figures differ depending under which scheme: either "at least 50%", or "over 50%", or "at least two-thirds".

[andyz1]

As Jeffrey says, you are correct in your understanding that you can exercise you right to "enfranchise" if 50% or more of the lessees sign a Section 13 notice (http://www.leaseholdsolutions.com), served on the freeholder.

An important consideration is the practicalities of getting a director or directors for the "nominee purchasor" company, the entity you set up to buy the freehold.

Also, bear in mind, if you only have 50% participation, those participants still have to pay for those who do not participate, so you need to consider how to fund that.

And bear in mind that you will all very likely be responsible for the maintenance of the common parts so you need to make arrangements for that.

If you are looking for solicitors and valuers expert in leasehold enfranchisement this area you could of course consider the people on this site or have a look at the Association of Leasehold Enfranchisement Practitioners (http://www.alep.org.uk).

[jeffrey]

Also, the s.13 Notice signatures must be by "qualifying tenants" as defined [s.5], being one for each of at least half of the flats [s.13(2)(b)]. More can join-in later.

[tenant29]

Download the information booklets from www.lease-advice.org.uk

[DM25]

Thank you guys that was really helpful
Dan