To extend the lease as an individual, you must fulfil certain criteria:

• The original lease must have been granted for an initial term of more than 21 years
• You need to have been the registered proprietor of the lease for at least two years

You are the registered proprietor from the date that you register the purchase of your house with the Land Registry. You can also transfer your right to extend a lease to a buyer. This means anyone buying your property will not have to wait the two years to extend the lease.

To buy the freehold of your property, it must legally qualify as a 'house'. The definition for this in law is quite broad, however, and may include:

• A shop with a flat above
• A building converted into flats

It cannot be used for purely commercial reasons, however, even if it was originally built as a house. It must also have no material overlapping with another building.

If there is a commercial element to the property - if you live above a business, for example - you may be required to fulfil a residence test to prove that you have lived at the property for two years, or for periods that amount two full years across the past ten years.

The rules for leasehold enfranchisement can appear complicated - however, we have the experience and expertise to offer you the advice you need. Call us today on 0370 1500 100.

Tenants who buy the freehold together usually grant themselves a 999 year lease with what is known as a 'peppercorn ground rent'. This is a nominal fee to replace the original ground rent being paid to the landlord. They are issued with a share in the company that is set up to buy the freehold. If collective enfranchisement is possible it can be a valuable asset for all property owners within the building.

In order to buy the freehold, certain criteria must be met:

• At least two thirds of all the leases must be let to eligible tenants
• At least half the flats must want to buy the freehold
• The building must be self-contained, with 25% or less for non-residential use

If the building has only two flats, both tenants must buy the freehold.

When collective enfranchisement is not an option, another alternative is Right To Manage. Setting up a Right To Manage company (RTM) allows the tenants to transfer management of their building from the landlord to themselves. If you are not in a position to buy the freehold of your building, Right To Manage can provide a practical alternative to have more control over your service charges and the day-to-day management of your building.

If you live in a leasehold flat, Irwin Mitchell can advise you of your options. Call the team today on 0370 1500 100, or use our online enquiry form.