Exercising the collective right to enfranchise—changes regarding participating tenants or the nominee purchaser
Exercising the collective right to enfranchise—changes regarding participating tenants or the nominee purchaser

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Exercising the collective right to enfranchise—changes regarding participating tenants or the nominee purchaser
  • Participating tenants
  • Nominee purchaser

Participating tenants

Under section 14(2) of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993), if a participating tenant assigns their lease to another person then, provided that a binding contract for the collective acquisition has not been entered into, the assignee has 14 days from the date of the assignment to notify the nominee purchaser of the assignment and to state whether or not they wish to participate in the proposed acquisition.

A qualifying tenant who was not originally a party to the initial notice can elect to participate later, but only with the agreement of all the current participating tenants. The new participating tenant must immediately notify the nominee purchaser of their participation. This does not apply if a binding contract for the collective acquisition has been entered into.

In 82 Portland Place (freehold) v Howard de Walden Estates [2014] UKUT 0133 (LC), the Upper Tribunal (Lands Chamber) (UT) confirmed that no particular formalities are required for the new participating tenant to elect to participate. In that case, the new participating tenants had entered into deeds of adherence, agreeing to be bound by the existing participation agreement as if they had been original parties to it. The UT decided it was necessarily implicit that the new participating tenants were