Enfranchisement: How Long Does Buying a Freehold Take? - By: Tim Bishop

To some extent the timescale for enfranchisement (also referred to as Freehold Purchase) is almost unique to the particular building in question and to some extent the individuals involved. For example, if the freehold is to be bought by 174 leaseholders, then obviously it will take longer to achieve resolution of enfranchisement than if there were only 5 or 6 leaseholders in the building.

The more leaseholders that are present in a building, the greater the risk of their tenancies not complying, some may be abroad, some may be in hospital, away on business and so on which makes the whole process much lengthier.

The difficulty with enfranchisement is that there are some works done prior to the Initial Notice being served. For example, agreement hs to be reached between tenants, a company formed if that is going to be the way forward, the agreements drawn up (participation agreements), a solicitor has to be appointed to draw up the standard Notice and a surveyor will have to be appointed to ensure that the valuation is correct. This aspect of the procedure can take between 3 to 6 months; then the Inital Notice is given. This is not an overnight course of action; it can drag on!

Other factors to consider are the professionals and individuals involved. Basically enfranchisement involves the freehold purchase by leaseholders. Nevertheless, it goes without saying that some leaseholders will be keener than others to buy the freehold and some freeholders will be keener than others to sell. Many landlords will see this process as serious financial dip to their business and in light of this will try to maximise the return they can earn from the freehold.

Normally, anyone whom is considering enfranchisement should be thinking about seeing it through for at lease two years. That is two years from the very start of the process (when leaseholders first start talking to each other about undertaking enfranchisement) through to the freehold purchase being completed.

Some enfranchisement processes are completed within this two year period, however it is best to keep your estimates modest. If you bank on the fact that the enfranchisement process will be completed within a year, then you may well be disappointed. It takes time, but it is worth the time and effort in he long run, simply because of the control that freehold purchase can give to leaseholders.

About the Author

Tim Bishop is senior partner at Bonallack & Bishop, a firm of enfranchisement solicitors specialised in advising on freehold purchase. 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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