Two questions:
- Does your property have at least two flats in it?
- Are at least two-thirds of the flats let to qualifying tenants?
A qualifying tenant requires a long lease, which is a lease of a term of years in excess of 21 years; (qualification is governed by the original term of the lease when first granted);
- a shorter lease which contains a clause providing a right of perpetual renewal;
- a lease terminable on death or marriage or an unknown date (including the so-called ‘Prince of Wales’ clauses);
- the continuation of a long lease under the Local Government Housing Act 1989 following the expiry of the original term;
- a shared ownership lease where the tenant’s share is 100%;
- A lease granted under the ‘right to buy’ or ‘right to acquire on rent to mortgage terms’.
But, even if the tenant satisfies the above criteria, he or she will not be a qualifying tenant if any of the following cases apply:
- the landlord is a charitable housing trust and the flat is provided as part of the charity’s functions;
- the tenant owns more than two flats in the building. This is either jointly with others or solely in their own name. Please note where this applies these flats will be discounted from the two-thirds;
- the tenant has a business or commercial lease.does it pass the 25% non-residential rule?:
If more than 25% of the internal floor area of the building, excluding any common parts, is neither used or intended to be used for residential purposes then the building will not qualify. This could be shops, offices etc. Please note garages and parking spaces specifically used by flats in the building will be classed as residential.
There is no right of collective enfranchisement where:
- the building is a conversion into four or fewer flats
- and not a purpose-built block;
- and the same person has owned the freehold since before the conversion of the building into flats;
- and he or an adult member of his family has lived there for the past 12 months.
- the freehold includes any track of an operational railway, including a bridge or tunnel or a retaining wall to a railway track.
Some properties are completely excluded from the rights of lease extension and collective enfranchisement:
- Buildings within a cathedral precinct;
- National Trust properties;
- Crown properties*.
* Although the Crown is not bound by the legislation, the Minister has made a statement to the House of Commons that the Crown will be prepared to comply with the principles of it.
You will then need to establish that there are enough qualifying tenants for a successful action. The minimum number of participating tenants must equal half the total number of flats in the building; for example, if there are 10 flats in the building, at least five of the flats of qualifying tenants must participate in the action. It should be noted that where there are only two flats in the building, both flats of qualifying tenants must participate.
