LRA 1967: enfranchisement of houses

by Practical Law Property and Practical Law Property Litigation

A practice note examining the statutory right for a tenant of a long lease of a house to purchase the freehold, a process known as enfranchisement, under the Leasehold Reform Act 1967 (LRA 1967). This practice note explores the key qualifying criteria that must be satisfied for a successful freehold claim, including the definition of a 'house' and what constitutes a 'long lease'. It provides an overview of the procedure for exercising this right, from serving a valid notice of claim through to the creation of a statutory contract and the completion process. The practice note also discusses the different valuation bases used to determine the purchase price for the freehold and addresses the amendments introduced by the Leasehold and Freehold Reform Act 2024 (LFRA 2024), insofar as they are in force. Guidance is also provided on dealing with intermediate interests, assigning the benefit of a claim, and the terms of the final transfer. For information on the right to an extended lease under the LRA 1967, see Practice note, LRA 1967: lease extensions of houses.