Lease Enfranchisement Glossary

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.

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.

A legal document that extends the length of your lease.

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

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

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

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.

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

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.

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)

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.

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.

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.

A notice claiming the right to collective enfranchisement.

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

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).

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

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

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.

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.

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.