The Leasehold Reform Act 1967 (as amended) gives leaseholders of houses the right to buy the freehold. In some cases, they have an alternative right to extend the lease.

Some freeholders will sell the freehold without the need for a formal claim, but, whether a claim is made or not, the leaseholder should obtain good professional advice to find out what the whole process will cost.

The right to enfranchise is dependent upon several qualifications for the house, the lease and the leaseholder. Broadly, the term at the start of the lease must be for more than 21 years, and the house must be vertically divisible, i.e. must have no overhang or underhang with a neighbouring building. If the tenant has owned the property for more than two years, they qualify to claim the freehold. There is now no need for a tenant to have lived in the property as their only or main residence, as this test has been abolished.

To be a qualifying leaseholder you must:

• Have a long lease.
• Have the lease of the whole house.
• Have owned the lease for two years (or periods amounting to two years in the last 10).

A long lease is:

• A lease of a term of years absolute above 21 years from the date of grant. The lease runs from the date of grant not from the commencement date of the term. The present unexpired term is not relevant; 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).
• A shared ownership lease where the leaseholder’s share is 100%.