Understanding lease enfranchisement

Lease enfranchisement is also known as collective enfranchisement. The system allows any collection of people that live in a property with leasehold status to force their landlord to sell the freehold of their property to them. This right is part of the Leasehold Reform Act 1993. Note that this right only applies to domestic property and not commercial businesses that may share a premises.

Using lease enfranchisement can have a number of key advantages including:

You no longer have to pay what can be high service charges, as you and your fellow tenants become responsible for the maintenance of your property
Freehold properties are generally easier to sell than leasehold properties
You will find it easier to remortgage your property once it is leasehold
You secure the future of your property for your decedents

Leasehold enfranchisement is usually available to you if you meet the following criteria:

There must be at least two tenants in your building that want to apply for lease enfranchisement
Your original lease must be for at least 21 years

You do not, as with lease extensions, have to have been a tenant for at least two years

As with all changes to the status of a property, it is vitally important to secure the services of a solicitor preferably with experience of lease enfranchisement. This is a specialist area of property law that must be administered correctly, to ensure your new freehold lease meets all of the current property regulations. A solicitor can also be very useful if your landlord contests your application for lease enfranchisement. Your solicitor can help you interpret the Lease Reform Act in the context of your application.

If you would like to obtain legal advice about property leases, Contact Law can put you in touch with a local specialist property law solicitor free of charge. So, if you have any questions or would like our help in finding local property law solicitors please call us on 0800 1777 162 or complete the web-form above.