Leasehold enfranchisement is a complicated area of law that gives you the right to purchase the freehold of your house under the Leasehold Reform Act 1967, or under more current legislation, particularly the Leasehold Reform Housing and Urban Development Act 1993, to seek a lease extension of your flat or to collectively enfranchise and buy the freehold with your co-tenants.
Collective rights to enfranchisement
The Leasehold Reform, Housing and Urban Development Act 1993, amongst other things, brought in the right to enfranchisement on a collective basis. The Act enables leaseholders of flats with a qualifying lease to act together to purchase the freehold of their building. This has been amended by the Commonhold and Leasehold Act 2002, in respect of which not all sections are yet in force.
Sherrards can advise on the tests necessary to ascertain whether the leaseholders of your building may be entitled to acquire the freehold from your landlord. We will set out the qualifying conditions and advise on the creation of an agreement between the lessees to make contributions towards the purchase price and costs, via what is known as a Participation Agreement.
Once again, this is a complicated area of law and we have specialist residential property and corporate lawyers to assist with this type of transaction.