Do you have a long lease and want to have more control or more of a say over your property?
Three ways you can have more control or more of a say over your property:
Collective enfranchisement
Lease extension
Right to manage
Collective Enfranchisement:
Subject to qualification, owners of flats in a building have the right to join together and buy the freehold of the building.
Are You Eligible?
Both the building and the tenants must qualify. The building must contain at least 2 flats and at least 2/3s of the flats in the building must be owned by qualifying tenants. Essentially, a qualifying tenant is someone who has a lease of over 21 years when it was first granted. Often leases of flats are 99 years or 125 years.
Non-eligibility:
If the landlord is a charitable housing trust or the flat is part of a charity’s functions. If more than 25% of the internal floor area of the building is neither used- or intended to be used- for residential purposes (excluding communal areas).
Lease Extension:
The right to extend your lease by 90 years on top of the existing term at a peppercorn rent (low/nominal amount). The tenant pays the landlord a premium calculated as per the act.
Are You Eligible?
You must own a long lease for a term in excess of 21 years from when it was originally granted. You must have been the lease holder for at least 2 years.
Non-eligibility:
Commercial lease or landlord is a charitable housing trust.
Right To Manage:
Subject to extortionate service charges or do not like the way your property is managed?
Right to manage enables tenants to set up a special company to transfer management functions. Management functions include services, repairs, maintenance, insurance and improvements. Tenants do not need to prove mismanagement to exercise the right to manage.
Are You Eligible?
Right to manage applies where the building is self-contained (which means structurally detached, in effect a terrace or detached building). The building must contain 2 or more flats held by qualifying tenants and the total number of flats held by qualifying tenants must be no less than 2/3s of the total number of flats contained in the premises. The participating tenants must occupy no less than 50% of the total number of flats. Example: If there are 23 flats in a building, at least 2/3 (16) must be held by qualifying tenants and at least 50% (12) must participate.
Non-eligibility:
To be a qualifying tenant, you do not need to occupy the flat as a residence but you must have a long lease- in excess of 21 years when originally granted- in order to be eligible.
The process of the above options can be daunting- the procedures are specific and can be complex. Seeking legal advice is the easiest and quickest option. If you would like to talk to someone about the process or seek advice as to whether you are likely to qualify, please do not hesitate to contact Hindle Campbell Law.