Collective Enfranchisement - Some Problems And Solutions - By: Tim Bishop

If you are a tenant in a block of flats and you are considering purchasing the freehold interest within the building, then you and your fellow leaseholders will have to start the process of collective enfranchisement.

You all have to have lease agreements that were 21 years or longer when you signed them and, as a collective, you must make up half the number of properties in the building or else you won't qualify to buy the freehold. Assuming that you meet these criteria, what can you do about some of the common problems that arise during the process of collective enfranchisement?

Problem: The Landlord is Absent.

One of the reasons tenants often invoke their right of leasehold enfranchisement is because the current landlord or freeholder is absent, meaning that they can't be found. If you've made due effort to contact them and still can't get hold of them, then you are entitled to apply to a court for the right to buy the freehold, stipulating that the landlord is absent as the reason for your claim.

Problem: You're Not Sure Where to Start.

In order to make a collective enfranchisement application, the tenants need to form together into a group and decide on a nominee purchaser to deal with the application. The will normally involve creating a private company limited by guarantee which then controls the process and manages any issues arising from it. Your enfranchisement solicitor will be able to help you set up your freehold company.

Problem: The Landlord Refuses Your Request.

If you believe that you have followed the correct procedures and the landlord still rejects you claim for inadequate reasons then you could consider taking your case before an Leasehold Valuation Tribunal. They'll look again at the case and decide whether they can deal with it or if it needs to be referred on to the Leasehold Valuation Tribunal - the LVT.

Problem: You Can't Agree on a Price for the Purchase.

An accurate valuation in leasehold enfranchisement can be difficult. You should get an specialist enfranchisement surveyor to value the difference between leasehold and freehold ownership. You can use that as a basis to negotiate, or get your solicitor or surveyor to negotiate, with your landlord. If you are unable to come to an agreement, then you may have to take the case before a Leasehold Valuation Tribunal.

You can see that there are many issues surrounding collective enfranchisement, but the process has been made simpler for tenants following a 2004 Act of Parliament, so as long as you follow the law and provide all the evidence you need, you hopefully shouldn't have too much trouble.

About the Author

Bonallack & Bishop are specialist collective enfranchisement solicitors. For advice on leasehold enfranchisement contact them today. Senior Partner Tim Bishop is responsible for all major strategic decisions at the firm, which he has grown by 1000% in 13 years. Tim sees himself as a businessman who owns a law firm.

Article Directory Source: http://www.articlerich.com/profile/Tim-Bishop/62652

Additional Articles From - Home | Reference & education | Legal