Why is a Lawyer Necessary for Collective Enfranchisement?


by Tim Bishop

You're thinking about applying for collective enfranchisement. You know you're eligible so you've consulted the other tenants in the building who have all agreed that it's a good idea. So the next thing to do is establish a committee to take control of the process, take over the management of your block and sort the enfranchisement.

Then you begin to wonder if you could cut the costs down by getting this done, without a lawyer. Everyone nods in agreement; lawyers are expensive and having read up on the right to enfranchise, it seems a fairly straightforward process.

What will a lawyer do that a reasonably intelligent person can't do by themselves?

A solicitor will prepare the original notice and serve it on the freeholder. This will transfer the freehold into a new company that has been established just for this; he or she will then prepare a new lease.

Well, a surveyor's valuation report to value the freehold will be necessary. Ok, not too much bother there, you might think. Wait! You may run into difficulties if the landlord is uncooperative and having a qualified lawyer by your side will be essential. There will be additional legal costs incurred in an application to the Leasehold Valuation Tribunal for such matters to be sorted out but it will be worth it and avoid a lot of stress and anxiety.

There are also the agreements with the other flat owners who are part of the enfranchisement. They will need to have written documents prepared setting out their contributions and entitlement to new leases.

What about legal payments to the landlord? Yes, he will deserve payment of any reasonable costs, including his freehold valuation costs, the costs of legal advice he has received on the matter as well as his conveyancing costs. Do you really want to delve into this grey area by yourself?

Collective enfranchisement may be an essential business, even if the process can be frustrating at times. A lawyer who has thorough knowledge and experience in this area will be an invaluable support. Your long term financial gain at the end of enfranchisement is likely to override the costs involved in employing a solicitor to act for you.

An experienced lawyer will know what the problem areas are likely to be and be able to avoid them or prepare for them should they crop up. He will be organised, quick and talk to you in a manner that is easy to understand; he or she will know exactly how to negotiate costs and organise valuations. They will also be able to advise and guide you and help you through any tricky moments.

If you are going to take collective enfranchisement seriously, it's best to get a seriously qualified lawyer at the outset.

About the Author

Tim Bishop is senior partner at Bonallack & Bishop, a firm of experienced collective enfranchisement solicitors (http://www.enfranchisementsolicitors.co.uk ) with a team specialised in right to enfranchise advice. He is responsible for all major strategic decisions and has grown the firm by 1000% in 13 years. Tim plans to expand further, seeing himself as a businessman who owns a law firm.



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