Get organised for Enfranchisement
Once you have ascertained qualification as above then you will know the minimum number of tenants required to take part in the process. Possibly more than the required minimum will want to take part; alternatively you may need to actively encourage more people to join in.
Whatever the scenario, the first thing that needs to be sorted out is the organisation of a committee who will facilitate proceedings and liaise with participating tenants. Obviously, where groups of diverse people are involved (and some groups could be very large) then getting agreement on matters can be difficult, so once the group is formed it is recommended that all participating tenants enter into a formal agreement which governs their joint actions during the enfranchisement procedure e.g. rights of voting; negotiation, agreement of terms and the individual tenant’s financial contribution.
Solicitors should be instructed to prepare a formal Participation Agreement which will govern all the above and which can be relied on in the case of a dispute amongst participating tenants. It is especially important in the situation of large blocks of flats where any delays in decision making or disputes could endanger compliance with time limits and damage the enfranchisement procedure.
Decisions need to be made about funding the acquisition. Should payment be made up front? Is a loan or mortgage required? If so, should steps be taken at this stage to obtain loan finance in readiness for procedure? Certainly a fund will be required from the outset to cover costs of initial steps of gathering information, setting up the Nominee Purchaser Company, formalising future funding arrangements etc; what will happen after the acquisition, will new leases be granted?
As property and conveyancing transactions are involved in the enfranchisement procedure, a property solicitor should be engaged to assist with these matters.
Take a look at the ALEP Directory for find a professional who can help you.