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Lease Enfranchisement Glossary

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Do you find yourself staring blankly when a lawyer or solicitor waffles on with confusing terms and complex acronyms? Fall into a stupor at the very sight of a legal document?

Then it’s time to ditch the jargon and discover what those baffling words really mean. Gillhams has compiled a list of the most puzzling expressions and set each out in easy-to-understand layman’s terms – so you no longer need to be mystified by the madness.

Leasehold Enfranchisement

Leasehold Enfranchisement

For Freeholders

For Leaseholders

Lease Enfranchisement Glossary

Appurtenant property

In relation to a flat means any garage, outhouse, garden, yard or other property, belonging to, or usually enjoyed with the flat.


A transfer of rights held by one party to another party; i.e. the assignment of a Section 42 Notice.

Capitalisation Rate

The rate used to calculate the value of the freeholder’s rental income (i.e. ground rent), which forms part of the calculation for the premium for a lease extension or purchase of the freehold.

Collective Enfranchisement

The right given to leasehold owners of flats to collectively purchase the freehold of their building.

Competent Landlord

The person or legal entity who will receive back the interest in the property on the termination of the leasehold owner’s lease and the person/legal entity who can grant a new lease under the terms of the Act.


The date when the legal transaction is completed and when all of the terms agreed come into effect.

Compulsory Acquisition

The right provided to the government to acquire property belonging to someone else in certain circumstances, provided compensation is given.


The transfer of a legal title in a property.

Counter Notice

A notice given by the landlord in response to an Initial Notice.

Deemed withdrawal

In certain circumstances, a Section 13 or Section 42 Notice can be deemed to have been withdrawn. For example, in a Lease Extension Claim, where terms have not been agreed or there is a failure to enter into a new lease within the prescribed time frames, the Notice is deemed to have been withdrawn.

Deferment Rate

A rate applied to determine the value of the landlord’s reversion at the valuation date. (See Reversion).

Development value

Any increase in the value of the freeholder’s interest in the property, attributable to the possibilities of demolishing, reconstructing or carrying out substantial works of construction.

First Tier Tribunal (FTT) Property Chamber

The tribunal which hears cases concerning certain property matters including issues relating to collective enfranchisement and lease extension claims including applications for determination when issues are in dispute.


A separate set of premises which forms part of a building, which has been constructed or adapted for use for the purposes of a dwelling.


Ownership of land outright. Freehold property usually comprises the land and any buildings on the land.

Hope Value

The potential value the freeholder would receive on a possible future sale of the freehold or the grant of a lease extension. For example the freeholder may receive the benefit of a premium for a future lease extension.


Any building designed or adapted for living in and reasonably referred to as such.

Initial Notice

A notice given under either Section 13 or Section 42 of the Leasehold Reform, Housing and Urban Act 1993, exercising the leasehold owner’s right to a lease extension or collective enfranchisement claim.


The person who owns the superior interest in the property/land. This may not be the freeholder but the person/legal entity holding a Head Lease.


A lease granted back to the freeholder in a collective enfranchisement claim.

Lease Extension

A legal document that extends the length of your lease.

Long Lease

A lease granted for a term of years exceeding 21 years.

Marriage Value

Any increase in value of the freehold arising from the joining of the freehold and leasehold interests.

Missing Landlord

A landlord who cannot be found or whose identity cannot be ascertained.

Nominee Purchaser

A person or corporate entity who is appointed by the participating leasehold owners of a collective enfranchisement claim to conduct all proceedings on their behalf arising out of the Initial Notice.

Participating Tenants

The qualifying leasehold owners who have joined in the Section 13 Notice claiming the right to collective enfranchisement.

Participation Agreement

An agreement entered into by the participating leaseholders in a collective enfranchisement claim which sets out various obligations that the participating leaseholders have, in relation to each-other, in respect of the claim.

Peppercorn Rent

A notional ground rent which in effect means there is no ground rent to pay.


The amount to be paid to the competent landlord for a lease extension.(See Competent Landlord)

Qualifying Tenant

A leaseholder who owns a flat under a long lease (i.e. a lease granted for a term exceeding 21 years).


The proportion of the existing lease value to the notional freehold value assuming the short lease has no right to any extension. Relativity graphs are available to assist in determining this hypothetical value.

Resident Landlord

In a collective enfranchisement claim, a resident landlord may prevent there being a right of collective enfranchisement. Various factors will need to be considered. The definition of a resident landlord is where a landlord or an adult member of the landlord’s family has occupied a flat or other unit in the premises as his only or principal home.


The future interest retained when a lesser interest is granted (i.e. if a lease is granted for 20 years the interest in land will revert to the person who originally granted the lease when it expires at the end of the 20 years).


The person/legal entity entitled to the greatest monetary interest in the reversion.

Rights of First Refusal

In certain circumstances if a freeholder wishes to dispose of his interest in a building he must first offer the interest to the leaseholders of the building before offering it on the open market.

Section 13 Notice

A notice claiming the right to collective enfranchisement.

Section 42 Notice

A notice claiming the right to extend an existing lease of a flat.

Statutory Deposit

A deposit of 10% of the premium, set out in the Section 42 Notice, which is payable to the competent landlord on request. (See Competent Landlord).

The Commonhold and Leasehold Reform Act 2002

An Act which makes provision about commonhold land and amends the law relating to leasehold property with regards to rights and responsibilities of leaseholders.

The Leasehold Reform Housing and Urban Development Act 1993

An Act which gives leaseholders of flats the right to request that the freeholder agree to a collective enfranchisement or a lease renewal.

The Leasehold Reform Act 1967

An Act which enables leaseholders of houses held on long leases at low rents to acquire the freehold or an extended lease.


A leasehold or freehold interest, which effectively demonstrates ownership of that property, registerable at the Land Registry.

Unilateral Notice

A Unilateral Notice enables an entry to be made against another person’s title at the Land Registry in order to protect a third party interest (i.e. a Section 13 or Section 42 Notice). (See Title)


The value (usually determined by a surveyor) to be paid for a lease extension or a collective enfranchisement claim.

Valuation Date

The valuation date for the purposes of a lease extension or collective enfranchisement claim is the date of the Section 42 or Section 13 Notice.

For legal advice on Lease Extensions, buying or selling a share of a freehold, and related property matters, email us at or call us on +44(0)20 8965 4266.

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