The following Property practice note provides comprehensive and up to date legal information covering:
Leasehold Reform Act 1967 (LRA 1967) and Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) gave long leasehold tenants an individual and collective right respectively to buy the freehold of their house or block of flats, as the case may be. In addition to conferring the collective right of enfranchisement, LRHUDA 1993 widened the number of houses which could be the subject of individual enfranchisement.
If the house or block of flats in question were the only property in the landlord’s portfolio, then this would not present any great problems for the landlord. However, potentially serious estate management issues might arise if the landlord were compelled under either Act to enter into involuntary and piecemeal sales of its portfolio.
Both LRA 1967 and LRHUDA 1993 enable the landlord to impose a management scheme over a neighbourhood. Such schemes, which survive enfranchisement, allow the landlord to retain powers of management over, and rights against, any property which is sold in order to preserve the character and appearance of the buildings, communal gardens, or other shared facilities within that neighbourhood. By way of example, estate management schemes currently operate in parts of Dulwich and Belgravia, as well as the entirety of Welwyn Garden City. Schemes may also be created in relation to Crown land under LRHUDA 1993, s 94(6).
A typical management scheme entitles the landlord:
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