Collective Enfranchisement Or Lease Extension: Which Is Best? - By: Tim Bishop

Collective enfranchisement, where all the leaseholders within a building come together and buy their freehold, then manage the property between them is often regarded as the very best solution to being a leaseholder in a block of flats. Contrarily, organising a lease extension is seen as somehow being 'second best'. So while collective enfranchisement is good, extending leases is not seen as such a good thing!

Collective enfranchisement is a more dramatic step than the process of extending leases. In order to start collective enfranchisement you must get at least 50% of the other qualifying leaseholders on board. Then you need to work together to 'buy' the freehold for the building. Some of the leaseholders consequently become responsible for the building, due to this a management company is formed to deal with these duties.

With regard to a lease extension, you don't need to get the agreement of any of your other leaseholders so you can operate on your own. With a lease extension there is far less hassle as well!

Although collective enfranchisement is undoubtedly a positive thing, it is not without hassle or the potential for hassle. Even though the leaseholders may be in it together at the start of the process, this mutual support might slowely disappear during the collective enfranchisement procedure. With a lease extension the potential for hassle with your neighbours is minimal!

With a lease extension you get exactly what it says, an extension to your lease. But with the collective enfranchisement, you end up with a management company, often run by the leaseholder who was the most vocal during the process of collective enfranchisement and who now is barking orders to everyone in the vicinity. However this is not the situation when getting a leasehold extension. You simply end up with a longer lease. It may be simple, but it is beautifully simple. Once you have a longer lease then your flat will instantly be more easy to sell and its value will have increased.

So if you really believe that getting a lease extension is not as good as collective enfranchisement then think again. A leasehold extension can certainly be a good thing and it can certainly avoid any conflict with your neighbours. It is always worth considering a simple lease extension rather than the complex and often extremely slow and frustrating route of collective enfranchisement.

About the Author

Do you need to make a Lease Extension? Contact Bonallack & Bishop, specialist Lease Extension Solicitors. 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.

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