Contested Enfranchisement
What it means
“I know that navigating property disputes can be daunting. That’s why I pride myself on providing a personalised and strategic approach to every case. I’m here to guide and support you every step of the way.”
Collective enfranchisement is the right for a group of flat tenants with long leases to act together to buy the freehold of their building on terms prescribed by the Leasehold Reform Housing and Urban Development Act 1993 (LRHUDA 1993).
A collective enfranchisement claim is commenced by the service of an initial notice by the participating tenants on the reversioner, who is usually the freeholder.
Once the claim is made, the freeholder must serve a counter-notice. A freeholder wishing to contest a claim for collective enfranchisement must do either of the following in the counter-notice:
- Not admit the tenants’ claim on the grounds that the tenants do not meet the qualifying criteria; or
- Oppose the tenants’ claim on redevelopment grounds.
We can act on behalf of freeholders wishing to dispute the tenants’ right to bring a collective enfranchisement claim.
When can a freeholder not admit a collective enfranchisement claim?
If a freeholder does not admit the tenants’ right to collective enfranchisement, it must give reasons in the counter-notice. This will involve explaining why the tenants do not meet the qualifying criteria under LRHUDA 1993.
Upon service of the counter-notice, the tenants will have 2 months to apply to court for a declaration that it was entitled to bring the enfranchisement claim.
If the court dismisses the tenants’ application, the initial notice will cease. However, this does not prevent the tenants’ ability to serve a further notice if they satisfy the relevant qualifying criteria.
We can act on behalf of a freeholder wishing to defend a collective enfranchisement, including preparing and serving the counter-notice on the tenants.
When can a freeholder or landlord oppose the tenants’ claim on the grounds of redevelopment?
A freeholder can either admit or not admit the tenant’s right to bring the claim but oppose it on the grounds that either the freeholder or another relevant landlord proposes to redevelop the premises.
Within two months of service of the counter-notice, the freeholder and/or any intermediate landlord may apply for a court order that there is no right to enfranchise on redevelopment grounds.
The court may not make an order unless both of the following conditions are met:
- At least two-thirds of the long leases are due to terminate within five years of the date of service of the initial notice;
- The court is satisfied that, once those leases have come to an end, the applicant intends to demolish, reconstruct or carry out substantial works to the premises, and it could not do so without obtaining possession of the flats under the leases.
However, as the tenant of a flat under a long lease has the right to a new lease under section 42 of the LRHUDA 1993, it is often difficult to satisfy the first condition.
We can represent landlords wishing to oppose enfranchisement on redevelopment grounds, including providing expert legal advice on your particular case.
With you every step of the way
We’re here to take your side, guide you through the intricacies of litigation, resolve disputes efficiently and help you achieve the best outcome for you.
Why clients choose us
Clear advice you can trust
Naylor advised us on a leasehold enfranchisement with a slow and not always competent Council as the original freeholders. We had two solicitors during the process (with the handover being smooth) and both were excellent. Accessible, patient, competent and, for this process, by and large completed within a fixed price. We would certainly recommend.
David Wand
Private Client
