If you are a leaseholder (tenant) of a residential property or building containing two or more flats, enfranchisement and collective enfranchisement are legal rights awarded to you under Landlord and Tenant Law. Enfranchisement allows leaseholders to buy the freehold of their residential rental property or to extend their lease for a significant amount of time (for example, enough to cover a lifetime). In comparison, collective enfranchisement refers to the purchase of the freehold of a building containing multiple flats/apartments. This article looks at the different types of enfranchisement and how the process works.
What is Enfranchisement?
Enfranchisement refers to a transaction in which a leaseholder purchases or extends their lease to the freehold of their house. This is a legal right provided to leaseholders under the Leasehold Reform Act 1967 as amended by the Commonhold and Leasehold Reform Act 2002 and current legislation being updated in The Leasehold and Freehold Reform Act 2024.
Eligibility Criteria for Enfranchisement – How do you qualify for enfranchisement?
To qualify for enfranchisement to acquire the freehold of a house or to extend the lease, both the leaseholder and the property will need to meet a variety of qualification criteria set out in the statute under which the application is made. *
*Leasehold and Freehold Reform Act 2024
Since this article was first published, new updates have been made to the legislation which will make it easier and cheaper for leaseholders to buy their freehold, increase standard lease extension terms to 990 years for houses and flats, and provide greater transparency over service charges. First steps in rolling out the Act has been to remove the requirement for a flat owner to have lived there for two years before being able to extend their lease (as of February 2025), which means more leaseholders in mixed-use buildings can apply for the right to manage; and to limit the costs they can be made liable for. Find further information here:
https://www.gov.uk/government/news/millions-of-leaseholders-backed-with-strengthened-rights
What Types of Property Qualify for Enfranchisement?
Property Criteria for Enfranchisement: For the property to qualify, the house must be a building which is reasonably considered a house, divided vertically from any adjoining house. It does not matter if the building has been divided into flats as long as you have the lease of the whole house.
Certain buildings which contain commercial premises can qualify as a house within this definition. For example, the lease of a building which is a shop with a flat above, may qualify for enfranchisement.
How Do You Apply for Enfranchisement to Acquire the Freehold of a House?
You can start the process of applying for enfranchisement by serving a “Tenants Notice” on the freeholder or intermediate freehold landlord, should there be one in place. The service of this notice creates a contract between both sides to grant and accept the freehold transfer. Your landlord then has two months to formally respond with counter-terms, or they will be bound by the terms proposed by you, the tenant. The procedure for buying the freehold is set out in the 1967 act and in the Enfranchisement Regulations (the regulations).
In most cases, a landlord cannot refuse an enfranchisement claim. However, the process involves complex legal procedures, and the correct notice needs to be served to the landlord. It is vital that you use a specialist solicitor and surveyor to ensure the process is completed correctly.
What Is Collective Enfranchisement?
Collective enfranchisement refers to the purchase of the freehold of a building containing multiple flats/apartments. It is the right outlined in the Leasehold Reform Housing & Urban Development Act 1993, for leaseholders of a building or part of a building that contains flats to collectively buy the freehold of that property.
Can You Buy the Freehold if the Landlord is Missing?
Yes. It is still possible to obtain a share of the freehold If the landlord is missing. However, this involves a separate procedure, either by making an application to the court, under the Landlord and Tenant Act 1987 or the Leasehold Reform Housing and Urban Development Act 1993.
Either way, the leaseholders must demonstrate an attempt to trace the missing landlord before applying. Seeking early legal advice is important to ensure all correct procedures are followed.
Read our previous article on Collective Enfranchisement FAQs
https://www.roselegal.co.uk/collective-enfranchisement-faqs/
Our Expertise in Enfranchisement
At Rose & Rose HPLP, our property team possesses in-depth knowledge of leasehold enfranchisement, including both individual and collective processes. We are dedicated to upholding best practices and delivering high-quality service to our clients. We provide tailored legal advice to guide you through every step of enfranchisement, ensuring your rights are protected and your objectives achieved.
Members of the Association of Leasehold Enfranchisement Practitioners
As a member of the Association of Leasehold Enfranchisement Practitioners (ALEP), our team adheres to the highest standards of professionalism and integrity in leasehold enfranchisement matters. ALEP membership signifies our commitment to delivering exceptional service, ensuring that both leaseholders and freeholders receive expert guidance throughout the enfranchisement process.
Why choose an ALEP Member?
Formed in 2007, ALEP promotes best practice by vetting individual barristers and organisations to ensure they have the requisite expertise in leasehold enfranchisement.
Membership of ALEP acts as a badge of assurance so that leaseholder and freeholder clients can be confident that they are employing professionals with the right level of expertise in handling potentially complex transactions.
Enfranchisement Solicitors London
Property Enfranchisement is a very complex area of the law and requires expert advice. Our expert property team has in-depth knowledge of purchasing freeholds and can offer legal advice and guidance on all enfranchisement matters and other leasehold enfranchisement rights, such as collective enfranchisement.
Please get in touch with one of our specialist solicitors below – Ricki Bansoodeb & Nick Roots – to discuss the best way forward for you. We will provide you with further and specific advice tailored to your circumstances.
