engranchisementEnfranchisement

Even if you have 80 years left to run on your lease, it could make the property hard to sell. An enfranchisement, or the process of buying a property’s freehold, offers several benefits including greater control of the management of your building, and potentially doing more to satisfy your mortgage lenders’ needs.

The “qualifying tenants” must own at least two thirds of the flats in a building, and the leases must have original terms of at least 21 years.

If a building has four flats or fewer, and a “resident landlord”, tenants are not eligible for enfranchisement. A valuation for enfranchisement calculates the value of a freehold or share of a freehold to an existing leaseholder. This is a specialised job which needs to be undertaken by experienced Chartered Surveyor with detailed knowledge of this type of valuation.

 

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