Why Do People Choose Enfranchisement?

Increasing the value of the property is one of the major reasons a leaseholder will go through the enfranchisement procedure. A lease which has a longer term to run is worth a lot more than a short lease. A lease diminishes in value as the term reduces.

Leaseholders are able to purchase the freehold from the freeholder. This will mean that they are able to get a lease extension because they now own the freehold interest. The flat involved will then be much more marketable simply because prospective buyers will wish to buy a flat that has an associated freehold, this is far preferable to having a lease that is only left with twenty or so years to run. So it is more financially beneficial doing a freehold purchase!

Nevertheless the major reason behind enfranchisements is bad management by the landlord. Commonly the freeholder does not keep on top of the maintenance or does not spend adequate time on the building. Due to this leaseholders can often be frustrated with the landlord and the only option they have is to start the enfranchisement procedure (purchasing the freehold).

Bad management of common areas such as the stairways and a lack of maintenance generally, along with an increase in service charges can cause leaseholders to lose patience pretty quickly. Service charges are often levied for cleaning, lighting or heating to common areas and so on. If these are sensible then the leaseholders will not complain. But if the freeholder suddenly increases these charges, then the leaseholders can feel that they are no longer willing to tolerate charges being imposed upon them.

Lastly, enfranchisement can often take place where the freeholder has irritated the leaseholders in some way whether this is by a lack of cooperation or being quite disagreeable. This is mercifully rare, but it can lead leaseholders to simply try and take control over their own destiny, as opposed to being at the mercy of someone whom they view as not having their interests at heart.

If you are interested in enfranchisement for your block, be aware that the legal process and in particular the timescale, complex and can be tricky. It is crucial therefore that when electing your advisors you need to get yourself a specialist solicitor and surveyor whom are experienced in freehold purchase.


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Bonallack & Bishop are specialist enfranchisement solicitors. For advice on freehold purchase contact them today. Senior Partner Tim Bishop is responsible for all major strategic decisions at the firm, which he has grown by 1000% in 13 years. Tim sees himself as a businessman who owns a law firm.