Hello - New Member Freeholder/Landlord

[Catherine Lily]

Hello

As a freeholder/landlord I've been looking for impartial legal advice, nice to find a site that seems to offer this. Wishing all a good day.

My query is this.
COLLECTIVE ENFRANCHISEMENT.
I am happy to share the freehold with the 75% (3) Leaseholders in the building, they seem to have a different opinion, and want to exclude me in that share of the freehold, seems rather harsh legal point.

Has anyone experienced this before, or could point me to the legislation that clearly notes what my rights are, there is a plethora of places for leaseholders, but none for freeholders, do people imagine they don't merit the same considerations? hmmm.

Be great to hear or receive some up to date info on this, its quite a minefield of legalese

Thanks in advance
Catherine Lily

[Kati]

Re: Hello - New Member Freeholder/Landlord

to LB

I'll tag [MENTION=15129]Crazy council[/MENTION] for you xx

[R0b]

Re: Hello - New Member Freeholder/Landlord

The gist of collective enfranchisement is that if there are over 2/3 (i think?) of people who lease flats in a building and are a qualifying tenant wish to buy out the freehold owner and the building itself satisfies the criteria then the freeholder cannot refuse to the buyout.

I can't remember the exact legislation that grants this right but I am sure others will respond to it @Openlaw15.

What I do know is that the procedure is complex and not exactly straightforward - they will need to give you the proper notice which means they will probably need to get solicitors involved as well as surveyors too in terms of the value of the land. One of the problems they might encounter is who the purchase is going to be, if they do qualify and because there is three of them they will probably need to enter into an agreement as to who that will be along with rights and obligations etc. So there can be an expensive process involved when going down this route.

Have they done anything so far in terms of going about this or just given you notice that this is their intention? What are your concerns about this? is it the fact that you are just not happy they have a right to do this or something else?

[des8]

Re: Hello - New Member Freeholder/Landlord

Hi and welcome

From the info given, am I correct in assuming this is a four unit building, and that you are a resident freeholder?

If that surmise is correct the premises do not qualify: LEASEHOLD REFORM,HOUSING AND URBANDEVELOPMENT ACT 1993 sec4 (4)

[R0b]

Re: Hello - New Member Freeholder/Landlord

@des8 has helpfully identified the correct legislation. A quick look shows that the following criteria must be satisfied before they have any right:

The building:

- It is a self-contained or structurally separte building that can be divided from other parts
- Not more than 25% of the internal flooring area could be occupied for non residential use. This excludes the common areas.
- Contains two or more flats held by qualifying tenants (below).

The Tenants:

- 2/3 of the flats held by qualifying tenants
- all qualifying tenants must give notice
- tenants who qualify must have a long lease, that is over 21 years.


Exceptions when a collective enfranchisement cannot take place (des8's point) and all points need to be satisfied:

- the landlord or a member of the family has lived in the building for the last 12 months as their main residence.
- building has a maximum of 4 flats
- building is a conversion and not a purpose built one
- at the time of conversion of the building, the landlord was the freeholder.

[Catherine Lily]

Re: Hello - New Member Freeholder/Landlord

Their notice is valid, aside from minor drawing omission, so solicitor has served, without prejudice, noting those.
I understand the process is not straightforward.

My concern is that I am to be excluded from owning part of the freehold with the other, my intention is to sell the flat, will that exclusion apply to any other purchaser?

The frustrating part is that this has been going on for 8 months, the date of service is now 'deemed withdrawn' (I was working with cyclone villages abroad), still replied and thought all was heading in right direction, now the LVT/FFF are involved, those costs are not recoverable, more expensive, and to date I am paying for the privilege of losing any part of the freehold, until its complete when they have to pay, seems unjust to me

- - - Updated - - -

Yes they do, unfortunately, thanks

- - - Updated - - -

I do not fit the 4th exception - at the time of the conversion i was not the freeholder.
I've been advised that collective enfranchisement is in order, and any exclusions do not apply, are you absolutely sure about the fact that ALL THOSE POINTS need to be satisfied?

All the other criteria is met, this is very interesting, if it is a legal oversight, or if it does apply is CRITICAL

[Catherine Lily]

Re: Hello - New Member Freeholder/Landlord

I've found this to be useful
http://www.gabyhardwicke.co.uk/image...nchisement.pdf

[des8]

Re: Hello - New Member Freeholder/Landlord

Their notice is valid, aside from minor drawing omission, so solicitor has served, without prejudice, noting those.
I understand the process is not straightforward.

My concern is that I am to be excluded from owning part of the freehold with the other, my intention is to sell the flat, will that exclusion apply to any other purchaser?

The frustrating part is that this has been going on for 8 months, the date of service is now 'deemed withdrawn' (I was working with cyclone villages abroad), still replied and thought all was heading in right direction, now the LVT/FFF are involved, those costs are not recoverable, more expensive, and to date I am paying for the privilege of losing any part of the freehold, until its complete when they have to pay, seems unjust to me

- - - Updated - - -

Yes they do, unfortunately, thanks

- - - Updated - - -

I do not fit the 4th exception - at the time of the conversion i was not the freeholder.
I've been advised that collective enfranchisement is in order, and any exclusions do not apply, are you absolutely sure about the fact that ALL THOSE POINTS need to be satisfied?

All the other criteria is met, this is very interesting, if it is a legal oversight, or if it does apply is CRITICAL

If all four points apply the premises do not qualfy:. As you were not the freeholder at the time of conversion I regret it would not seem your hoped for exemption exists under this section: Chapter 1 Sec 10:

10Premises with a resident landlord.

[F1(1)

For the purposes of this Chapter any premises falling within section 3(1) are premises with a resident landlord at any time if—

(a)

the premises are not, and do not form part of, a purpose-built block of flats;

(b)

the same person has owned the freehold of the premises since before the conversion of the premises into two or more flats or other units; and

(c)

he, or an adult member of his family, has occupied a flat or other unit contained in the premises as his only or principal home throughout the period of twelve months ending with that time.]

[des8]

Re: Hello - New Member Freeholder/Landlord

What a b****y unfair piece of legislation!

If you as an individual buy the freehold of a run down Victorian house that has been converted into four flats, live in one of the flats while you let the other three and refurbish the building,
you tenants can then purchase the freehold, and all they have to do is offer you a tenancy of the flat you live in.(Sec 36 of the LRH &UD Act)
The result is the former freeholder becomes a tenant of a company run by the previous tenants. The company has landlord rights, whilst the previous landlord doesn't even have participation in that company

[Openlaw15]

Re: Hello - New Member Freeholder/Landlord

Hello

As a freeholder/landlord I've been looking for impartial legal advice, nice to find a site that seems to offer this. Wishing all a good day.

My query is this.
COLLECTIVE ENFRANCHISEMENT.
I am happy to share the freehold with the 75% (3) Leaseholders in the building, they seem to have a different opinion, and want to exclude me in that share of the freehold, seems rather harsh legal point.

Has anyone experienced this before, or could point me to the legislation that clearly notes what my rights are, there is a plethora of places for leaseholders, but none for freeholders, do people imagine they don't merit the same considerations? hmmm.

Be great to hear or receive some up to date info on this, its quite a minefield of legalese

Thanks in advance
Catherine Lily

Hello, Catherine

All interests in land have to be registered, has the sole 'nominee (or sole company)' for the enfranchisement made a notice on the land register yet? Has there been an 'initial notice' by only one nominee' for all the interests of the 'qualified tenants' in the 'qualified buildings?' Has the minimum number of tenants criteria been satisfied? What about architectural plans, and any incorporeal rights, ie any easements (main landings/ hallways etc) have these been clearly marked out on the building plans? What about your counter claim notice, have you made one? It seems the law favours tenants, at one time it used to be more strict.

[Catherine Lily]

Re: Hello - New Member Freeholder/Landlord

Hi there,

Yes, the 3 leaseholders have a company, yes notice on the land register for qualified tennants, yes initial notice and counter notice has been served, no architectural plans, dont know about incorporeal rights, or easements, indeed it does seem that favour is one-sides. Concerned about ongoing burdenrsome costs, my solicitor has not asked for any contributions towards legal fees as yet, process has been going on since Oct last year, we were negotiating, till legal time passed, then leaseholders applied to LVT/FTT, now. It seems I have little choice in matter, but keen to have some costs covered, thanks for your input