Leading law firm Banner Jones has successfully guided a group of homeowners in Westminster through collective enfranchisement, a legal process that allows leaseholders to purchase the freehold of their building.

Completed under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993), this deal enabled the residents to buy the freehold for a block of flats from Westminster Council. By purchasing the freehold, they gain greater control over the management and maintenance of their properties.

The homeowners established the 238 Gloucester Terrace RTM Company Ltd in 2023, with ownership equally shared among the flat owners.

Following a professional valuation by a surveyor, Banner Jones served the necessary notice to initiate the process, providing comprehensive legal advice on the purchase. This included advising on the split of the purchase price and other costs among the participants, as well as registering the purchase at the Land Registry.

Commenting on the deal, Tim Barley from the Business Legal Services team at Banner Jones said: “Exercising a right to collective enfranchisement is a wonderful way for leaseholders to take greater control of their properties, giving them significantly more autonomy and independence in managing their affairs.

“They can decide on necessary works, their timing, and associated costs. Additionally, the participants can grant themselves new, longer leases, potentially increasing the value of their flats, particularly if their current leases have less than 80 years remaining."

Mahmood Jessa, a representative of the tenants, said: "We are delighted to have secured the freehold to the building, which gives us much more autonomy in the way we manage our building.

“The support from Banner Jones throughout was invaluable. Their expertise and guidance throughout the process ensured that we navigated the complexities smoothly and successfully. We’re very grateful for their support.”

Mr Jessa, who also owns Simba Property, a family run business in the heart of Watford that specialises in Developments and HMO properties, added: “I regularly use the business legal services team at Banner Jones for various projects and properties. Not only are they efficient and helpful, but they are also extremely knowledgeable.”

Tim Barley from Banner Jones added: "Obtaining a collective enfranchisement involves specific eligibility rules and often requires the group to have a holding company to manage its affairs properly. For those who want to have the autonomy to manage their property independently, without a landlord, the benefits are significant, but it can be quite a complex process. We advise anyone interested in the process to seek specialist legal advice."

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