Showing posts with label Enfranchisement. Show all posts
Showing posts with label Enfranchisement. Show all posts

Sunday, July 30, 2017

Enfranchisement Explained

Enfranchisement Explained

No one wants to experience financial difficulty. However for flat owners in the UK it can often be the case that a short period of financial difficulty can result in a long term financial gain.

Why? How? What? Where? When?

If you lease your property you need to get familiar with and learn the knowhow about enfranchisement. This is the correct term for the process by which you buy the freehold on your flat from the landlord. If your flat is part of a block then you are unable to do this soley, you must have the support of your fellow flat owners and this is referred to as 'collective enfranchisement'.

When you purchase the freehold you effectively turn your leasehold property, in which you are the tenant, into a freehold property. It is you - or a team of tenants - who are then the freeholder(s) and they consequently own the property and the land upon which it is situated.

One of the advantages of pursuing collective enfranchisement is that you and your fellow flat owners can manage your own block. So, if your flat is not well managed you can see how this can be of immense benefit and ease stress.

Nothing in life comes free and this includes enfranchisement on your leasehold home. It can also be a lengthy process. It is good practise to retain a specialised lawyer, who can offer you tailored advice. The Law establishes how much compensation is due to the landlord when you enfranchise so this is not an area where you haggle or pitch in your own ideas.

If your lease is less than 80 years you, as the tenant, will be required to pay 50% of what is known as 'the marriage value' to the freeholder. Remember that the less amount of years you have on the lease, the higher the reversion will be.

Your legal expert will sort all this out for you and smooth the path. You will also need to ascertain that you meet certain 'eligibility' criteria at the outset. The right to enfranchise isn't simply yours for the asking so check that your case is applicable before you begin. If in doubt, ask your solicitor for advice.

Short term pain may yield a high dividend of long term financial if you find things difficult, repeat an old slogan to yourself: 'if it hurts a little, it's because it is doing you good'.

Bonallack & Bishop are a firm of specialised enfranchisement solicitors For expert advice on your right to enfranchise, contact them today. Senior partner Tim Bishop is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 12 years and has plans for its continued development.

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