Collective Enfranchisement - Qualifying Criteria

[cdo7]

Does a tenant who owns the only two long leases in a residential self contained building have an automatic right to acquire the freehold under the LRHUDA 1993?

I ask since I note that there must be a minimum of two participators, but do not know if this means two different participators.

Many thanks

[jeffrey]

Are there two flats- and nothing else- in the whole building; or are there other parts which are either commercial or non-long-leasehold?

[cdo7]

Just the two flats, and nowt else!

[jeffrey]

Just the two flats, and nowt else!
See s.5(5). I read this as meaning that- if a person is the QT of one flat but would also be the QT "of each of two or more other flats"- the flats have no QT. Consequently, if the QT of one flat is the QT of ONLY one other flat, he is QT of both. Agree?

[cdo7]

I agree, but does anyone else?!

[jeffrey]

To help others form a view, here's s.5(5):

Where, apart from this subsection,

(a) a person would be regarded for the purposes of this Chapter as being (or as being among those constituting) the qualifying tenant of a flat contained in any particular premises consisting of the whole or part of a building, but

(b) that person would also be regarded for those purposes as being (or as being among those constituting) the qualifying tenant of each of two or more other flats contained in those premises,

then, whether that person is tenant of the flats referred to in paragraphs (a) and (b) under a single lease or otherwise, there shall be taken for those purposes to be no qualifying tenant of any of those flats.

My reading is that the latter paragraph excludes a lessee of 2 (or more) other flats, so it includes a lessee of only 1 other flat.

[Corinne Tuplin]

Hi there,

If there are two flats in the building on two separate leases and both are owned by the same person, then, assumming the other eligibility criteria are met, you would be able to proceed with enfranchisement.

There is no longer a residence/occupation requirement for enfranchisement.

I hope this assists.

Kind regards,


CORINNE TUPLIN
SOLICITOR
PRO-LEAGLE
www.proleagle.com

[TomMerralls]

If a leaseholder owns 2 flats in a 2-flat building, he/she does qualify to buy freehold under the terms of the legislation. If he/she owns 3 flats or more (in a building with 3+ flats), that leaseholder is disqualified from purchase of freehold.