Collective Enfranchisement Made Easy
Tim Bishop
How much will enfranchisement cost me? The cost of enfranchisement depends on numerous factors such as; the length of your unexpired term and any ground rent payable. If you have 80 years or more left to run then you will also be exempt on paying marriage value (more information below). You will however have to pay all the costs for the transaction (including those belonging to the landlord). On the up side, there is no stamp duty land tax payable on collective enfranchisement purchases.
Do I need a formal valuation when enfranchising? Not entirely necessary but it would be helpful. The notice served on the freeholder must state the proposed price and you have to be careful here, because if it's unrealistic it could invalidate the notice. More probably than not, the freeholder will employ a specialist valuer, so it makes sense that the tenants have a valuer to negotiate on their behalf. Not many surveyors specialise in enfranchisement, so make sure you look for the right one, qualified in this area.
How much time will the process take? It will most likely take 2-3 months in order for you and your fellow tenants to get organised, this involves getting legal advice and a valuation. From the service of the notice to the landlord the time scale can go from a few months if everything runs smoothly, to 18 months if the freeholder disputes the claim and you need the services of a Leasehold Valuation Tribunal.
How do I 'get organised'? The normal process is for a residents committee to be formed and for one or two of the key people to drive the matter forward. As opinions of other tenants must be taken in account, it's a good idea to invite a solicitor to attend a meeting of the committee. He or she will answer questions, explain what is involved and advise. Check that this professional is a specialist in this area in Law.
Try to get everyone organised; whoever is the 'leader' of the tenant team, needs to be firm and professional. Records need to be maintained and the members kept informed and working to time schedules. It is often quoted that for this kind of process to run smoothly it should be operated like a military campaign. So rally the troops and go for victory!
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About The Author
Bonallack & Bishop are expert Collective Enfranchisement Solicitors. If you need particular advice about the right to enfranchise contact one of their solicitors today. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 13 years and sees himself as a businessman who owns a law firm.
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