In a recent post on Addicted to Property, one of our favourite property blogs, Courtney Manton, one of the partners at Belgravia estate agents Best Gapp, explained some of the intricacies of leasehold enfranchisement. The process is one where tenants use their legal rights to buy or lengthen the lease on their property. To understand it, you first need to understand some of the terms:
Leasehold and Freehold
A freeholder owns the property and the land it stands on outright. A leaseholder only owns the lease to the property- the right to live in for the term of the lease, which could be anything up to 999 years. There are various rights to leasehold enfranchisement that a tenant can use if they want to change their status.
When a group of tenants want to buy the freehold to their property as a group, it is known as collective enfranchisement. There are various criteria that need to be satisfied, such as length of occupancy and nature of occupancy.
A key part of the leasehold enfranchisement process is establishing the value of the lease.With a property of great value, this may require the parties to seek a decision from the Leasehold Valuation Tribunal.
The article on the blog explains all you need to know, with Courtney Manton, who has over thirty years experience in the property industry, talking to the guys at Addicted to Property.