That said, assuming the obligations are met it may be possible for the Lessees to buy the Freehold of the building from the current freeholder. (also know and described in the Lease as the Lessor)

Lessees Freehold Enfranchisement (or Collective Enfranchisement) is the legal process by which the leaseholders in a building join together to force the freeholder to sell them the freehold of your building.

Right 2 Manage can assist leaseholders in this process giving the Lessees the legal right to take over management responsibility of their property from the current freeholder. This right was created under the Commonhold and leasehold reform act 2002

To collectively enfranchise there are certain rules:-
Firstly, there must be agreement of at least 50% of the Lessees wanting to Enfranchise. Then the process can begin which will need to include: –

Right 2 Manage can assist with this process for you.
Once the statutory process is complete, the benefits of Enfranchisement include:

• The ability of appointing your own chosen Managing Agent.

• Having a say in how money is spent on Property Maintenance.

  (assuming the lease provisions are always complied with)

• Having a say in Property Management expenditures. (assuming the lease provisions are always complied with)

• Not having to pay Ground Rent (assuming it is payable) The basic procedure is:-

  • A Limited Company is formed to undertake the responsibilities of the Lessor and hold the Freehold of the building.

  • At least 2 Lessees will need to become Directors of the new Limited Company

  • All individual Leaseholders will need to be invited to join the new company

  • Serve notice on the Freeholder

  • Obtain the freehold and take control of your building.