Collective Enfranchisement - Step by Step - By: Tim Bishop

When starting on the right to enfranchise, before the first meeting, print out our handy collective enfranchisement guide and hand one to each tenant. This rough guide will help you to understand the steps and time limits you'll have for each task. Stick one on the notice board and don't forget to keep one for yourself.

Statutory time limits and procedures when carrying out enfranchisment:

1) The enfranchising leaseholders provide an Information Notice. This is just a discretionary step and it's up to you whether to do so or not.

2) The freeholder has to reply to this Information Notice within 28 days.

3) The first mandatory issue in enfranchisement is for the leaseholders to choose a nominee purchaser. This is normally a company consisting of the enfranchising tenants and, if forming such a company, register at Companies House.

4) Once you have got all the information you need and taken advice from an experienced collective enfranchisement solicitor, you are ready to serve the initial notice. The 'valuation date' will be fixed as the date of service of the Notice.

5) If the landlord would like more information, he has to ask for it within 21 days after he received the Initial Notice.

6) The nominee purchaser must respond to this request within 21 days.

7) As part of the collective enfranchisement process, the landlord has to serve a Counter Notice by the date that is specified. Remember that this date has to be a minimum of two months from the date on which the Initial Notice was served.

If the landlord doesn't serve the Counter Notice, the nominee purchaser has to apply to Court for a vesting order. Failure in doing this results in the Initial Notice being deemed withdrawn.

8) If the counter notice disputes qualification, the nominee purchaser must apply to the Court. This must be within two months of the Counter Notice, for declaration that the Initial Notice is valid.

If you cannot agree terms, you or the landlord is entitled to apply to the Leasehold Valuation Tribunal. The time for this must be at least two months from, and within six months of, the date of the Counter Notice.

9) The LVT's determination becomes final 21 days after it is sent out by them. If you are going to appeal to the Lands Tribunal this has to be done within this period.

10) In enfranchisement, the freeholder must provide a draft contract within 21 days of the LVT's final determination.

11) The parties involved in collective enfranchisement are expected to enter into the contract within two months after the LVT's final decision. This is called the 'appropriate period'.

12) If the correct time frame passes and contracts have not been exchanged, the enfranchising tenants must go to court within the next 2 months to seek a vesting order.

Keep this list to hand, get a good lawyer on board who is experienced in handling enfranchisement and keep your cool.

About the Author

Bonallack and Bishop are specialist collective enfranchisement solicitors with significant expertise in advising on right to enfranchise. 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 has plans for further expansion.

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

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