Collective Enfranchisement: The Key Terminology - By: Tim Bishop

Avoiding 'lawyer speak' when dealing with complicated areas of the law such as freehold purchase can be difficult. Legislation in particular can appear overly complex and is hard to understand.

There are lots of terms used as part of the process you need to understand if you're going to get through the process and ultimately achieve your goal. We will look at the main terms.

Freehold Purchasing.

This might seem obvious, but if you are buying the freehold you need to know what this entails. It basically refers to leaseholders (particularly in a block of flats) having the right to buy the freehold of the property from the current owner. Freeholds mean that you own the property outright; a leasehold merely allows the owner of the lease to reside in the property for a set period of time.

Collective Enfranchisement.

This is related to purchasing the freehold. Collective enfranchisement, which is often referred to as leasehold enfranchisement, essentially refers to groups of tenants in a block of flats coming together and asserting their right to purchase the freehold on their building.

The Leasehold Reform, Housing and Urban Development Act 1993.

This is the relevant legislation which has afforded leaseholders this important right to enfranchise.

Leasehold Valuation Tribunal.

This is a quasi-judicial, locally-based body that is authorised by the 1993 Act to make decisions relating to issues of freehold purchase in the event of a dispute between applicants and the current freeholder.

Peppercorn Rent.

This refers to a set amount of rent payable (normally quite minor) that residents then have to pay after they have bought the freehold. It is, essentially, a charge from the freeholder to the leaseholder.

Marriage Value.

The marriage value is calculated in reference to the increase in value of the flat or apartment after the process of purchasing the freehold.

Absent Landlord.

One reason tenants come together to assert their right to collective enfranchisement is because their current landlord is absent for any number of reasons. If this is the case, then the tenants' application to buy the freehold should state that it is due to an absent landlord.

You can see from the above list that there is a significant amount of jargon relating to the issue of collective enfranchisement, but while the terminology is often a little complex, the basic ideas are relatively simple. However the law, and in particular, the procedure, surrounding leasehold enfranchisement are complex. You will need to appoint a surveyor to value the freehold and a solicitor to deal with the legal aspects - bear in mind, however, that most solicitors and surveyors don't come across this sort of work very often, so often have little idea of what to do. It is therefore essential that in selecting a surveyor and legal advisor, you choose collective enfranchisement specialists.

About the Author

Thinking of collective enfranchisement? Bonallack and Bishop are specialist leasehold enfranchisement solicitors. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 13 years.

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

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