As well as being technically eligible to participate in lease enfranchisement, you also need to make sure that your fellow tenants involved are willing to take on all of the responsibilities associated with being a property freeholder -effectively taking on together the duties of the landlord once you have purchased the freehold. This can be a big responsibility and includes setting up a company to manage the building and its freehold and taking care of all the landlord’s duties such as repairs and maintenance. This is why it is so important that people are not only eligible to take part in the lease enfranchisement but also understand what it means and are willing to take on the responsibilities.
Property enfranchisement – the need to work together
Your fellow tenants are one of these issues. As well as assessing their eligibility to take part in the enfranchisement and making sure that enough of you qualify, you also need to make sure that you are going to be able to work well together as the process will require cooperation and for everyone to do their part at the appropriate time. You might also want to consider how you will work together once you have finished acquiring the freehold.
Setting up a freehold company
Another issue to consider when you are thinking of lease enfranchisement is the fact that you will most likely have to set up a company to manage the freehold once you have acquired it. This comes with the usual responsibilities inherent with running a company; you will need a board of directors to oversee the operations of the company and it is vital that you keep accounts and records of everything the company does so it stays accountable.
Tenants who don’t participate in the enfranchisement
You might also want to think about the tenants in your building who didn’t qualify to take part in the enfranchisement. You are not legally obliged to involve them, but it can be a good idea to make them aware of what is going on and involve them in any decision-making that your company undertakes so there are no ill-feelings between tenants following the acquisition of the freehold.
Considering Property Enfranchisement? Contact our specialists today
Our solicitors have the expertise in this specialist area of law. So wherever you live in England or Wales, we can help you – taking your instructions by phone, e-mail or Skype. For expert legal advice;
- Call us now on FREEPHONE 0800 1404544, or
- Send us an email using the enquiry form below.
Comments or questions are welcome.