Exercising the collective right to enfranchise—contract, conveyance and payment
Exercising the collective right to enfranchise—contract, conveyance and payment

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

  • Exercising the collective right to enfranchise—contract, conveyance and payment
  • Need for binding contract
  • Conveyance to the nominee purchaser
  • Effect of conveyance
  • Payment

Need for binding contract

Although the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) treats the reversioner and the nominee purchaser in some respects as being akin to parties to a contract for the sale of the relevant interest, it nevertheless anticipates that they will actually enter into a separate binding contract once the validity of the initial notice has been accepted, or determined by the First-tier Tribunal (Property Chamber) (FTT) where the property is in England or the Leasehold Valuation Tribunal (LVT) where the property is in Wales, (unless the provisions as to vesting orders apply).

Once the terms of acquisition have been agreed, or determined by the FTT/LVT, the reversioner must submit the draft contract to the nominee purchaser within 21 days. There is then a procedure for the nominee purchaser to suggest amendments, which will be incorporated into the draft contract if the reversioner either agrees them or fails to object to the