Leasehold enfranchisement meaning

FORTHCOMING CHANGES : There are several proposed reforms to the leasehold and enfranchisement framework-see Practice Note: Property key future developments tracker for further details. This Checklist outlines what a tenant must consider and the actions required, with associated timetables and cut-off dates, to collectively buy the freehold of qualifying premises under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993). It covers service of a section 13 notice of claim; review of a landlord’s section 21 counter-notice admitting or denying the claim and/or resisting it on redevelopment grounds (together with steps where the landlord fails to serve one); and the limits for applying to the First-tier Tribunal (FTT) (or, in Wales, the Leasehold Valuation Tribunal (LVT)) to settle terms if not agreed and/or to the County Court where the contract is not completed within the statutory period after terms are agreed or determined. It also highlights steps required if a landlord fails to serve a counter-notice and the key timetable risks involved. Guidance...

This Checklist sets out the particulars that a tenant or landlord must provide when applying to the First-tier Tribunal (Property Chamber) (FTT) under the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules (the Property Chamber Rules), SI 2013/1169. It specifically outlines the prescribed information required where the application relates to the right to enfranchise or obtain a lease extension of a property under the Leasehold Reform Act 1967 (LRA 1967), and the specific documents to accompany such claims. Details needed solely for applications brought under different statutes are excluded. Rule 8 permits the tribunal to waive or ease compliance with the Property Chamber Rules, practice directions or tribunal directions, where proportionate in the circumstances, where it is content that the particulars and documents supplied with an application are adequate for determining it, and that no party has suffered, or is likely to suffer, prejudice. All applications to the FTT The particulars to be included...

Checklist This Checklist outlines the considerations and actions a landlord must take, together with the relevant timings and cut-off dates for those actions, after a tenant issues a request for information and/or serves a notice of claim under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993). Matters covered include serving a landlord’s section 45 counter-notice, deciding whether to admit the claim or dispute it on the ground of an intention to redevelop, and time limits for applying to the First-tier Tribunal (FTT) (or, in Wales, the Leasehold Valuation Tribunal (LVT)) to determine terms where agreement is impossible, and/or to the County Court if completion of the lease has not occurred within the statutory period after terms are agreed or determined. For guidance in relation to the steps to be taken by a tenant, see: Lease extension of flats under LRHUDA 1993 (preparation and procedure) for tenants—checklist...

This flowchart outlines what a surviving spouse or civil partner is entitled to from a deceased partner’s estate on intestacy, with the result depending on the value of the estate and whether the deceased was also survived by children or remoter issue. It also identifies the destination of the estate where there is an intestacy and no surviving spouse or civil partner, in accordance with sections 46 and 47 of the Administration of Estates Act 1925. For guidance on the operation of the statutory intestacy rules, including the statutory trusts, see Practice Note: Intestacy—summary, Intestacy—beneficial entitlement and Intestacy—beneficial entitlement—Q&As...

FORTHCOMING CHANGES : Several reforms are anticipated across the leasehold and enfranchisement sphere—see Practice Note: Property key future developments tracker for further details. This Flowchart is intended for use when a tenant pursues enfranchisement or seeks a lease extension of a house under the Leasehold Reform Act 1967 (LRA 1967). It outlines the procedure from the service of a tenant’s notice of claim, incorporating a landlord’s notice in reply, through to making applications to the First-tier Tribunal (FTT) (or the Leasehold Valuation Tribunal (LVT) in Wales) and/or the County Court, as appropriate, according to the issue in dispute...

The Landlord and Tenant Act 1987 (LTA 1987), Part I Under the Landlord and Tenant Act 1987 (LTA 1987), Part I, qualifying tenants of flats have a right of pre-emption (the right of first refusal), enabling them to acquire their landlord’s interest when the landlord intends to dispose of it. A landlord may not make a relevant disposal without first serving notice on the qualifying tenants, and if, having confirmed the tenants do not wish to exercise that right on the stated terms, any allowed disposal must not proceed on terms more favourable than those originally offered to the tenants. Should the tenants accept the landlord’s offer, a statutory process then governs completion of the disposal. Click here to download a PDF version of the flowchart:...

In this issue: Disputes and remedies Enfranchisement and right to manage Easements and covenants Enforcing security and property insolvency LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts Dates for your diary New and updated content Trackers Latest Q&As Disputes and remedies Property management company owes no duty of care to a tenant for the acts of porters hired via an independent contractor (Shamsan v 44-49 Lowndes Square Management Company Ltd) In Shamsan v 44-49 Lowndes Square Management Company Ltd [2024] All ER (D) 59 (May), [2024] EWCA Civ 436, the Court of Appeal (Civil Division) dismissed the appeal and affirmed that the judge had correctly determined the respondent property management company bore no duty of care to the appellant tenant regarding conduct by porters engaged by an independent contractor to provide services at the property...

What was the background? Six prominent landlords — ARC, Cadogan & Grosvenor, Abacus, Wallace, John Lyon’s Charity and Portal Trust — commenced judicial review proceedings, alleging that three elements of the LFRA 2024 infringe A1P1 of the European Convention on Human Rights. The dispute focused on leasehold enfranchisement: the statutory mechanism by which long leaseholders may purchase the freehold or extend their lease, devised to remedy the ‘wasting asset problem’, whereby leaseholds lose value as the term shortens despite tenants having paid sizeable premiums and ongoing maintenance charges. The impugned provisions were: a ceiling on ground rent set at 0.1% of the freehold vacant possession value for the purposes of enfranchisement calculations; the elimination of marriage value from enfranchisement premiums by proceeding on the basis that the tenant is not seeking to acquire the freehold; and the removal of tenants’ responsibility for landlords’ non-litigation costs in enfranchisement claims. It was agreed between the parties that these reforms would markedly reduce the...

In this issue: Transferring property Property management Residential property Environment, energy and buildings Agricultural property Property in Scotland Property taxes Additional property updates this week Daily and weekly news alerts New and updated content Trackers Transferring property The Law Society’s new draft Code for signing and exchanging property contracts 2024 The Law Society is inviting conveyancers to comment on a fresh draft code covering the signing and exchange of property contracts. We review the proposals in detail. Refer to News Analysis: The Law Society’s new draft Code for signing and exchanging property contracts 2024. Consultation on transparency of ownership of land held on trust The Department for Levelling Up, Housing and Communities, the Department for Business and Trade, HM Treasury, and HMRC have opened a consultation aimed at improving transparency around land ownership where trusts are involved. Targeted feedback is sought on options to expand access to trust information held...

Prior to the coming into force of the Landlord and Tenant Act 1987, Part II (LTA 1987), the court retained a wide-ranging jurisdiction to appoint a receiver to assume control of the management of any property (including a block of flats) whenever it was considered just and convenient to do so. Nonetheless, that power was seldom exercised in practice in relation to blocks of flats, likely owing to the expense and the frequent requirement, in most cases, and, where applicable, to evidence default by the landlord or managing agents regarding the performance of the landlord’s repairing, maintenance or insurance obligations under the lease. Part II of the LTA 1987 offers an alternative remedy by vesting power in (what are now) the First-tier Tribunal (Property Chamber) in England and the leasehold valuation tribunal in Wales to appoint a manager to take over the management of premises comprising flats; yet that jurisdiction likewise arises only where there is some default by the landlord or the managing agents in performing the landlord’s repair,...

The RTM company Only a right to manage company can obtain and then use the right to manage. Such a company must be a private company limited by guarantee, and its objects must include the right to manage. In England, the form of the company’s articles is set by the RTM Companies (Model Articles) (England) Regulations 2009, SI 2009/2767; in Wales, by the RTM Companies (Model Articles) (Wales) Regulations 2011, SI 2011/2680 (together, the Articles Regulations). There is no requirement for the company’s name to contain the letters ‘RTM’ (Fairhold Mercury v HQ (Block 1) Action Management). The articles of association must also describe the premises with adequate precision...

Shared Ownership (SO) Shared Ownership (SO) is a government-backed route intended to widen access to home ownership, predominantly for leasehold properties. Purchasers begin by buying a stake in their home and paying rent on the remaining share. They can then acquire additional slices of equity over time through staircasing, ultimately reaching full ownership at final staircasing. Although often called ‘part rent part buy’, a more accurate description is that the SO buyer holds an equity interest while renting under a lease. Across England, excluding Greater London, SO is delivered via Homes England (HE) funding programmes: for SO homes delivered 2016–21, under the Shared Ownership and Affordable Homes Programme 2016–21 (SOAHP 2016–21) since 1 April 2021, under the Affordable Homes Programme 2021–26 (AHP 2021–26) The rules and requirements governing SO are set out in Chapter 1 of HE’s Capital Funding Guide (CFG). Eligibility criteria be at least 18 years old have a household income of £80,000 a year...

LEASEHOLD REFORM, HOUSING AND URBAN DEVELOPMENT ACT 1993 SECTION 92 NOTICE OF DEFAULT relating to the premises described as [ insert address of the tenant’s property ] (the Flat). Addressed to [ insert the landlord’s name OR the qualifying tenant’s name ] [ , incorporated in England and Wales, bearing company registration number [ insert...

To: [ insert name and address of claimant ] I confirm receipt of [ a copy of ] your notice dated [ insert date ], asserting the right to obtain [ the freehold OR an extended lease ] (delete as appropriate) of the house and premises identified in your notice (see Note 1 below). [ [ I acknowledge your right (subject to any issue concerning the accuracy of the particulars provided in your notice of the house and premises). ] ] (delete if inapplicable) (see Note 2 below). [ I do not acknowledge your right, for the following reasons: ] [ state the reasons why the tenant’s right is not acknowledged ] (delete if inapplicable) ............................................................................................................................ ............................................................................................................................ ............................................................................................................................ ...

Landlord and Tenant Act 1987, section 5B OFFER NOTICE To: [ [ name of tenant ] OR [ name of the qualifying tenant of flat [ insert flat number ] ] ] of [ address of flat ] PLEASE NOTE: THIS NOTICE SETS OUT IMPORTANT LEGAL RIGHTS FOR YOU AND OTHER QUALIFYING TENANTS UNDER THE LANDLORD AND TENANT ACT 1987 (LTA 1987). YOU SHOULD SEEK IMMEDIATE LEGAL ADVICE ABOUT IT. We, [ name and address of landlord's agents ], acting for [ name and address of landlord or mortgagee exercising power of sale ] (the 'Landlord'), hereby notify you as follows: This notice is served pursuant to sections 5 and 5B of the LTA 1987 and concerns [ describe the building containing flats affected by the proposed disposal ] (the 'Building') within which the flat you rent is located. The Landlord holds [ the freehold of OR a leasehold interest in ] the Building [ pursuant to a lease dated [ date ]...

Section 57(1) of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) Provides that the terms of any new lease must be conferred in line with LRHUDA 1993, s 56(1) as regards rent (a peppercorn) and the term (90 years after the existing lease’s term date), and, save for appropriate specified amendments, should otherwise reflect the provisions of the current lease. In addition, LRHUDA 1993, s 57(6) confirms that LRHUDA 1993, s 57(1) does not prevent the landlord and the tenant, in defined specified circumstances, from settling terms for the new lease which are not in accordance with the existing lease, in those specified circumstances. This applies in certain specified cases only...

Where a long residential lease is extended under section 56 of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) and the freehold is subject to a Form N restriction in respect of a charge to the freeholder’s lenders, will the HM Land Registry require lender consent to be submitted in order for the lease extension to be registered notwithstanding that the lease extension is pursuant to statute? A restriction entered on the register indicates that the proprietor’s power to deal with the land is constrained in some manner. Its practical effect is either to bar registration of a disposition, or to oblige the applicant to satisfy specified requirements before registration can proceed, for example by producing evidence of consent from the person entitled to the benefit of the restriction. A restriction may apply to every disposition, or be confined to a defined class of disposition. It can prevent any entry from being made permanently, for a stated period, or until a stated...

Costs under LRHUDA 1993, s 60 As a broad rule, when a notice is given under section 42 of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993), the tenant who gives it is liable—so far as they have been incurred by any relevant person acting in pursuance of the notice (for example, the landlord)—for that person’s reasonable costs: LRHUDA 1993, s 60(1). In addition, if the section 42 notice later ceases to have effect, or is deemed withdrawn, the tenant’s liability under this section is for the costs incurred by any person only up to that time (the precise ambit is set out in LRHUDA 1993, s 60). Accordingly, LRHUDA 1993, s 60 raises two issues where an error occurs when launching a tenant’s claim for a new lease: Does a purported section 42 notice that is invalid for some reason still fall within the rule as ‘a notice’? Alternatively, what is the consequence if a valid section 42 notice is...