Thursday, May 16, 2013

Leashold enfranchisement explained by Best Gapp's Courtney Manton

Leasehold enfranchisement is a complicated area of property purchase which may require advice from an expert. The term itself describes the right to buy or extend the lease that a tenant holds. The Leasehold Reform Housing and Urban Development Act of 1993 provides rights to holders of leases (tenants) that are originally of more than 21 years so that they may extend their lease for 90 years. The terms leaseholder and freeholder are hundreds of years old, and are firmly entrenched in UK property law and purchase processes.

Belgravia estate agents Best Gapp have been in the central London area for many years. Partner Courtney Manton explains the complications of leasehold enfranchisement in a recent blog post. He helps define the terms involved as well as outlining the potential problems. Negotiating the price of the lease can be a major part of the process, especially with a property of high value. There are many factors which will effect these negotiations.

Collective enfranchisement is when a group of tenants apply to lengthen or purchase the lease together. There are requirements such as the percentage of occupants and the nature of occupancy which will make a difference to their claim. The freeholder must be notified in the first instance and the collective leasehold enfranchisement can proceed from this point if they satisfy all the legal requirements.

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doors

The original Act granting the right of a tenant to acquire the freehold of the house is the Leasehold Reform act 1967 which has subsequently been amended.  The Leasehold Reform Housing and Urban Development Act 1993 provides similar rights to holders of leases originally of more than 21 years to extend their lease for 90 years.’ - See more at: http://www.bestgapp.co.uk/news/2013/05/courtney-manton-on-leasehold-enfranchisement#sthash.vM94RJfS.dpuf


The original Act granting the right of a tenant to acquire the freehold of the house is the Leasehold Reform act 1967 which has subsequently been amended.  The Leasehold Reform Housing and Urban Development Act 1993 provides similar rights to holders of leases originally of more than 21 years to extend their lease for 90 years.’ - See more at: http://www.bestgapp.co.uk/news/2013/05/courtney-manton-on-leasehold-enfranchisement#sthash.vM94RJfS.dpuf