Why should I enfranchise?
A: Residents who own the freehold can grant themselves long leases at no charge or for a nominal price and can in addition reduce or remove ground rents. In many cases the control of the management will be taken over by the tenants or a company run by tenants or nominated by them. Finally it is often a good selling point with buyers.
What are the requirements?
In order to qualify the building must be a self contained block of flats (which includes a converted building as well as a purpose built one) and:
• must have no more than 25% non residential use
• two thirds of flats must be let to qualifying tenants A qualifying tenant must hold their flat under a long lease, ie for a term of more than 21 years. 50% of qualifying tenants of flats in the building must participate Please note that it is no longer necessary for a qualifying tenant to have owned a flat for a minimum period or to have lived in it.