Collective Enfranchisement: Where to Start? - By: Tim Bishop

Your contract mentions collective enfranchisement and you know this has something to do with the freehold ownership of your property, but you are not sure what the term means and whether or not the right to enfranchise is applicable to you.

Forget the dictionary definitions. In 1993 tenants of blocks of flats were given the right to collectively acquire the freehold of their building. Various legislative changes were made and the resultant Commonhold and Leasehold Reform Act 2002 simplified the qualifying criteria, improving the position of leaseholders. It's reassuring to know.

What are the benefits of enfranchisement if you are already the leaseholder? Well, the main point is that the flat will be in your ownership without having to worry about leases that shorten with time. In most cases (although not all) the tenant's nominee company will take over the management of the building. Finally, there's the perceived psychological benefit in being part of a tenant owned building which is a good selling point with buyers.

Having considered these advantages you decide collective enfranchisement is what you are looking for. Does the word "collective" bother you? Well, that relates to one of the requirements to enfranchise. These are:

- the building itself should be a self contained block of flats, this includes converted buildings and purpose built flats

- the building must contain less than 25% non residential use to qualify

- two thirds of the flats must be let to qualifying tenants

- a qualifying tenant is one who holds the flat under a long lease for a term of more than 21 years

- the qualifying tenants participating have to comprise 50% of the flats in the building.

Also, one less thing to worry about: a qualifying tenant no longer has to have lived in his/her flat or owned it for a set period of time.

After, getting the knowhow on the early stages of collective enfranchisement, it's time for the homework. Once you have ticked all the eligibility and criteria boxes, it's time to start considering the next steps in enfranchisement: expense, time, administrative responsibilities. This is the 'detective' part of the job. Wait! Don't stress out; go one step at a time. Consult a lawyer who is qualified in the right to enfranchise; he/she will look after you and direct you through the processes until...hey, the flat is yours!

About the Author

Bonallack & Bishop in Salisbury are a firm of specialist collective enfranchisement solicitors. If you need specialised advice on the right to enfranchise then contact one of their solicitors today. Tim Bishop is senior partner at Bonallack & Bishop, a firm specialising in extending leasehold property. He is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 12 years and has plans for its continued development.

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