The Pros and Cons of Pursuing Collective Enfranchisement

Collective enfranchisement is the process of acquiring the freehold of a building wherein all flat owners of the building are joining together for that purpose, which is why it is termed “collective”. In London, this is possible because of the Leasehold Reform Housing & Urban Development Act 1993. However, before pursuing Collective Enfranchisement in London, take the time to consider some pros and cons that can help you decide whether it is worth it for you or not. You can find more information here.

The PROS:

• You will have full control of the building and will no longer be subject to the landlord. It’s like having your own home.
  
  
• You will no longer be renting, especially after you have paid the freehold fee.
  
  
• Since you are no longer leasing the flat, you can freely sell or put it to lease without worrying rejection from buyers because the fact that the property is not leased increases its value.
  
  

The CONS:

• Having full control means taking in full management responsibility of the building such as maintenance, etc.
   
• Disputes can arise from your co-owners especially regarding building responsibilities, etc. since you are sharing your right with most of them.
  
  
• Collective Enfranchisement in London can be more expensive than leasing as well as it can be even more expensive since you have to maintain the building after acquiring the freehold.
  
  
• You may be free from your landlord but you don’t own the building rights alone.
  
  
• Pursuing collective enfranchisement is a complex process that requires time, money and the need for legal experts and assistance.