Collective enfranchisement

Partner Melanie Verth

Residential Property Partner Melanie Verth writes on collective enfranchisement

Collective enfranchisement is the process whereby a qualifying group of leaseholders join together to buy the freehold of their building. The right is provided for under the Leasehold Reform Housing and Urban Development Act 1993.

For some leaseholders the action of ‘collective enfranchisement’ can be attractive. It can bring them the benefit of control of the freehold in which their flat sits.

By holding the freehold of your building you and the others participating will own the ground rents and structure of the Building. This ownership will allow the group to run the maintenance of the Building in a way in which they find acceptable and will also bring other benefits, such as the possibility of lease extensions for a nil premium.

The process involved in enfranchisement is complex and it is essential that before embarking upon it you seek specialist advice from specialist lawyers and surveyors. If the process is not followed correctly you may find yourself prevented or delayed from taking further action which will have cost implications. 

It should be noted that the purchase of the freehold of a leasehold house falls under different legislation and specialist advice should also be sought in relation to this process.

We specialise in collective enfranchisement and would be happy to guide you through the entire process from consideration of qualification to completion of the purchase and subsequent lease extensions. Our briefing note gives a basic overview of the important considerations and process.

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