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Collective Enfranchisement

Since 1993 it has been the right of qualifying tenants to join together and form a company to purchase the freehold of their building. Provided that at least 50% of the flats with qualifying tenants wish to proceed and the building qualifies, then the Landlord cannot refuse the application.

There are a few things to note:

  • The building must contain two or more flats held by qualifying tenants
  • Any commercial use of the building must be no more than 25% of the internal floor area
  • Tenants who hold three or more leases are not qualifying tenants
  • Management companies do not qualify
  • The purchase price put forward will need to be agreed or determined with the help of expert valuers

A qualifying tenant is any tenant except for:

  • Protected shorthold tenancy
  • Business tenancies
  • Tenancy granted with employment
  • Assured tenancy or assured agricultural occupancy
  • Sub-tenants
  • A tenant of three or more flats

The process of Collective Enfranchisement can be quite complex, so please call one of our

experts today to talk through the next steps you need to take and how we can make the process much less stressful.