Leasehold house owners may have a statutory right to buy the freehold of their house under the Leasehold Reform Act 1967. At Grant Saw Solicitors, our leasehold enfranchisement solicitors advise homeowners and landlords in London and the South East and across England on buying the freehold of a leasehold house, guiding clients through every stage of the enfranchisement process.
What is enfranchisement for leasehold houses?
Enfranchisement is the legal right for qualifying leasehold house owners to purchase the freehold (and any intermediate leasehold interests) without the landlord’s consent.
Although some landlords may agree to sell voluntarily, professional legal advice is strongly recommended to ensure
- the correct valuation is applied;
- eligibility is confirmed;
- procedural steps are followed correctly.
Who qualifies to buy the freehold?
In general, the house
- must be a building reasonably considered a house;
- must be divided vertically from neighbouring buildings;
- may include mixed-use premises (for example, a retail unit with flat above);
- can qualify even if it is internally divided, provided the entire house is leased.
The lease
- must be a lease originally granted for more than 21 years, or
- a lease containing a right to renew.
The leaseholder
- must be the registered leaseholder at the time of service of the notice of claim.
What is included in the freehold purchase?
The enfranchisement claim includes the “house and premises”, which as well as the house may include:
- gardens;
- garages;
- outbuildings;
- yards;
- any property let with the house (even under a separate deed)
In limited circumstances, the landlord may ask:
- to exclude certain premises (to avoid hardship), or
- to include additional premises if exclusion causes hardship.
The legal procedure for buying the freehold
A formal notice of claim is served by the leaseholder’s solicitors on the freeholder (and any intermediate landlords).
The landlord has 2 months to respond to the notice of claim.
This landlord’s reply can admit the claim or reject the claim with reasons
The landlord may request payment of deposit, which is the equivalent of 3 times the annual ground rent (or £25.00, if greater).
The provisions of the transfer of the freehold must be agreed.
The premium payable for the freehold is calculated using a statutory valuation formula.
If the premium is disputed and/or the provisions of the transfer are not agreed then leaseholder or the landlord may apply to the First-tier Tribunal to determine these.
When the premium and the other terms are agreed, or determined by the First-tier Tribunal, completion of the transfer of the freehold to the leaseholder takes place. This is usually to be 4 weeks later.
Either party may fix the completion date by notice. If this is not complied with, court proceedings may be taken to require completion to take place.
Why instruct Grant Saw Solicitors?
Our London-based leasehold enfranchisement solicitors provide:
- Specialist advice on purchases of the freehold under the Leasehold Reform Act 1967.
- Accurate strategy support.
- Representation for tribunal and court applications.
- Protection against costly procedural errors.
- Clear, tailored commercial advice.
We act for clients purchasing or selling the freehold of leasehold houses across London, the South East and England.
Speak to a leasehold enfranchisement solicitor
If you are considering buying the freehold of a leasehold house, expert advice at an early stage can save time and cost. For more information, please email us or contact us on 020 8858 6971.
