Collective enfranchisement

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Collective enfranchisement

    Hello all

    Slightly complex one here....

    I live in a block of 7 flats.

    - 5 have long leases
    - 1 has a c75 year lease
    - 1 has no lease hence forms part of the freehold
    - There is also a detached garage block, which also belongs to the freeholder (it may be on a separate lease as the Land Registry shows a mysterious "Flat 7" leasehold interest while there is no residential premises denoted by Flat 7? or perhaps this refers to the communal parts?)

    The freeholder has marketed the remaining flat for sale, we assume, with the intention of granting a long lease on it upon completion.

    My first question is, given that 3 of the 6 existing leaseholders are willing to go ahead with CE (therefore qualifying to do so), once we served the initial notice, is the FH constrained in their ability to grant a new lease on the 7th property?

    Secondly, would we be obliged to offer to acquire the garage block and the flat without a lease as part of the freehold, or can we simply offer to lease these back (on long terms etc)?

    Thanks in advance

    #2
    I think you'll need 4 out of 7 to go ahead assuming flat 7 is being made available for lease.

    If the garages aren't leased to the leaseholders then you probably can't have them but if they are part of the flat leases then you acquire them with the block freehold.

    Comment


      #3
      A solicitor has clarified that we'd only need 3 of the 6 as the 7th doesn't qualify since there is no lease

      I'm being told garages are excluded but we would need to make an offer for the flat that forms part of the freehold.
      My query focuses on:

      a) can they DEMAND a leaseback?
      b) would they be able to sell the flat (thereby requiring a new lease be granted) while this process goes on?

      Thanks

      Comment


        #4
        Originally posted by mw46 View Post
        A solicitor has clarified that we'd only need 3 of the 6 as the 7th doesn't qualify since there is no lease

        I'm being told garages are excluded but we would need to make an offer for the flat that forms part of the freehold.
        My query focuses on:

        a) can they DEMAND a leaseback?
        b) would they be able to sell the flat (thereby requiring a new lease be granted) while this process goes on?

        Thanks
        The advice guide on lease quotes-

        Provided at least 50% of the flats in the building, who are qualifying tenants, participate and the building qualifies the landlord cannot refuse.
        but goes on to state-

        The minimum number of participating tenants must equal half the total number of flats in the building; for example, if there are 10 flats in the building, at least five of the flats of qualifying tenants must participate in the action.
        So Tipper may be correct. It also states the FH is entitled to leaseback the 7th flat.

        Comment


          #5
          To make transaction straightforward advise the freeholder of you intention to purchase and advise that it may be best if they grant themselves a 999 year lease at a peppercorn prior to selling the flat

          This will avoid you having to get involved in either having to buy the flat or the complexity of the leaseback arrangement

          Comment


            #6
            Originally posted by DNM2012 View Post
            So Tipper may be correct. It also states the FH is entitled to leaseback the 7th flat.
            The 7th flat does not qualify "A qualifying tenant is essentially a leaseholder who has a lease that was in excess of 21 years when first granted. "

            Comment


              #7
              I read it as there are 7 flats in total, 6 qualifying and 1 owned by the the FH. Therefore you need 50% qualifying LH i.e. 3 minimum but also need 50% of the total number of flats i.e. 4 minimum.

              I may be wrong...

              Comment


                #8
                You should send your question ( about serving notice for CE when one flat is still without lease ) to the Legal Advisor at Leasehold Advisory Service ( LEASE ).

                Comment

                Latest Activity

                Collapse

                Working...
                X