Q&As

In a collective enfranchisement transaction, can the tenants who are not qualifying tenants take part in the enfranchisement providing there are enough qualifying tenants as well? Eg where there are 15 flats, four owned by the same person and two by another with nine owned individually. If eight qualifying tenants collectively enfranchise, can the owner of the four flats join in in addition to the eight qualifying tenants? Or is the owner of the four flats not able to participate at all?

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Produced in partnership with Shabnam Ali-Khan of Russell-Cooke
Published on LexisPSL on 03/06/2020

The following Property Q&A produced in partnership with Shabnam Ali-Khan of Russell-Cooke provides comprehensive and up to date legal information covering:

  • In a collective enfranchisement transaction, can the tenants who are not qualifying tenants take part in the enfranchisement providing there are enough qualifying tenants as well? Eg where there are 15 flats, four owned by the same person and two by another with nine owned individually. If eight qualifying tenants collectively enfranchise, can the owner of the four flats join in in addition to the eight qualifying tenants? Or is the owner of the four flats not able to participate at all?
  • The premises
  • Qualifying tenants
  • Participating tenants
  • Nominee purchaser

The Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) introduced the right to collective enfranchisement. This is a right upon qualification to acquire the freehold and any intermediate interests in the building.

The premises

LRHUDA 1993, s 3 stipulates that the premises must be:

  1. a self-contained building or part of a building

  2. contain at least two qualifying tenants

  3. at least two-thirds of the flats to be held by qualifying tenants

  4. no more than 25% on the internal floor area excluding common parts to be in non-residential use (this could include a shop or an office space for example)

Qualifying tenants

Generally, qualifying tenants are those tenants who hold a flat on a long lease. Long leases will usually be those leases which were for a term of more than 21 years when they were first granted. However, there other long leases pursuant t

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