What are the benefits of Enfranchisement as opposed to a lease extension?
- To make it possible to grant to residents who participate long leases, possibly with no ground rent.
- To allow the residents to take control of the management. Many Management Companies consult you only when major works are planned. Own the freehold and you can oversee those major works and all other expenditure on your property.
- To make it more attractive when you want to sell a flat (the psychological benefit of having a flat with share of freehold)
- The freeholder normally has rights to develop the property, for his own benefit. Owning the freehold gives you greater control over proposed modifications to the building.
- Lower Management charges. In central London, you could pay GBP 225 plus per year per flat just for the property management service. As a Freeholder, you save this money if you manage the property yourselves, or have more control over the Property Managers who now work for you.