All You Need to Know about Your Right to Enfranchise - By: Tim Bishop

How much will enfranchisement cost me? The cost of enfranchisement depends on numerous factors such as; the length of your unexpired term and any ground rent payable. If you have 80 years or more left to run then you will also be exempt on paying marriage value (more information below). You will however have to pay all the costs for the transaction (including those belonging to the landlord). On the up side, there is no stamp duty land tax payable on collective enfranchisement purchases.

Do I need a formal valuation when enfranchising? Not entirely necessary but it would be helpful. The notice which is served on the freeholder must include the anticipated purchase price, be careful however as a price which is unrealistic could invalidate the notice. More probably than not, the freeholder will employ a specialist valuer, so it makes sense that the tenants have a valuer to negotiate on their behalf. Not many surveyors specialise in enfranchisement, so make sure you look for the right one, qualified in this area.

How much time will the process take? It will most likely take 2-3 months in order for you and your fellow tenants to get organised, this involves getting legal advice and a valuation. The timescales of the transaction can be from a few months if everything goes to plan, or up to 18 months if the freeholder disputes the claim and you must appear before a Leasehold Valuation Tribunal.

How do I 'get organised'? The normal process is for a residents committee to be formed and for one or two of the key people to drive the matter forward. As you should discuss the opinions of all tenants involved it is best to ask a solicitor to be present at the committee meeting. He or she will answer questions, explain what is involved and advise. Check that the solicitor is an experienced enfranchisement lawyer.

Don't feel timid about getting everyone strictly organised; whoever is the 'leader' of the tenant team, needs to be firm and professional. Any records should be kept updated and the members of the scheme kept involved and working to an organised schedule. It is often quoted that for this kind of process to run smoothly it should be operated like a military campaign. So get everyone together and go for success!

About the Author

Bonallack & Bishop are expert Collective Enfranchisement Solicitors. If you need particular advice about the right to enfranchise contact one of their solicitors today. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 13 years and sees himself as a businessman who owns a law firm.

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