Enfranchisement and Initial Notices - By: Tim Bishop

The Initial Notice is the start of the enfranchisement process. The document sets out what offer the leasehold is making and therefore lays the foundations for the whole procedure.

It should also be noted that if the Initial Notice is accepted by the landlord then it becomes legally binding. It is therefore critical to get the Initial Notice right and ensure that it provides a really solid framework upon which the freehold purchase can be based.

In essence if the Initial Notice is too basic, is not signed properly or contains errors, then the freehold purchase is doomed to failure. However if you get it spot on, an Initial Notice will ensure your enfranchisement process will reach a swift conclusion.

For a start it is important to observe that the Initial Notice has to be signed by each of the participating tenants in order to ensure that the correct 'freehold purchase' procedures are adhered to from the start. Sometimes people assume that if there are joint tenants then only one needs to sign, but in fact, to ensure that the collective enfranchisement is being done properly, both joint tenants need to sign.

It is also important to be aware that the Initial Notice in any freehold purchase cannot be signed by an agent. It must be signed by the leaseholders as individuals. Nor is it acceptable for an agent to sign on behalf of a tenant.

It is important to demonstrate during the collective enfranchisement process that each tenant is fully aware and understands their actions. It is therefore not appropriate to have tenants signing a blank sheet of paper; they have to be seen to sign something that indicates exactly what the terms of the offer are.

The Initial Notice should contain an offer for the freeholder and information about what anticipated losses you expect for him/her. The initial offer should be carefully calculated using the opinion of a specialist surveyor. The Initial Notice is composed by the leaseholders and their solicitor, whom will then serve it on the landlord's legal representation and the enfranchisement process has begun. Thus the Initial Notice is a critical part of the route to enfranchisement and it needs to be carefully drafted and issued as soon as possible, so that it can really launch enfranchisement and enable all participating tenants to complete their freehold purchase.

About the Author

Bonallack & Bishop are specialist enfranchisement solicitors. For advice on freehold purchase contact them today. Senior Partner Tim Bishop is responsible for all major strategic decisions at the firm, which he has grown by 1000% in 13 years. He sees himself as a businessman who owns a law firm.

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