The leasehold enfranchisement legislation brought into effect a number of other rights in addition to the statutory right to approach the freeholder to buy the building's freehold interest or extend individual leases.
Section 5 Notices must be served by any freeholder looking to sell their freehold to an unrelated third party. This is often known as the 'right of first refusal'. Flat owners of the relevant building(s) must be notified of this intention and be given a chance to come together and make a rival bid either at auction or directly. If the freeholder fails to do this before selling the freehold, they could forfeit it to the group of flat owners. Find a specialist local solicitor or surveyor for initial free advice.
Right to manage (RTM) allows a 'no fault' opportunity to challenge the management and maintenance of the common and shared part of a building or development. This is significantly cheaper than freehold acquisition since the freeholder is not being compensated for loss of the asset. Although some may see it as 'second best' compared with buying the freehold, in certain circumstances, where management quality is by far the biggest issue, it can be the best option. ALEP members can give you initial free advice.
The Leasehold Valuation Tribunal (part of the Residential Property Tribunal Service) can be a valuable last resort for flat owners who want to question management charges, the conduct of the freeholder, buildings insurance charges, vary leases and a wide range of other matters. You will need professional support from a specialist enfranchisement solicitor or enfranchisement surveyor so why not contact a local ALEP member?
A form of tenure known as Commonhold was introduced in the 2002 Act. In many ways this is an excellent alternative to leasehold. However, to convert, a block's unanimous approval must be obtained among the owners and a freehold purchase must be undertaken in the first instance. Builders and developers have little incentive to implement it because it removes one potential source of income in the form of ground rent or sale of the freehold interest.
