NEW FIGURES SHOW FREEHOLD PURCHASE IS ON A ROLL

Press Release : October 2007

NEW FIGURES SHOW FREEHOLD PURCHASE IS ON A ROLL

LONDON, 18th October 2007 --- Enfranchisement & Leasehold Solutions (ELS) announced that a record number of owners of leasehold flats are opting to purchase their freehold (enfranchise). ELS are currently arranging collective enfranchisement for over 2,000 flats in London.

This news comes on the fifth anniversary of the Commonhold & Leasehold Reform Act 2002, the legislation that made it substantially easier for tenants of flats and houses to purchase the freehold of their properties.

LEASE also report that since commencement of the 1993 legislation there have been 765 cases of collective enfranchisement determined at the Leasehold Valuation Tribunal, relating to a total of around 7,500 flats. However, there is no record anywhere of 1993 Act cases which have settled without going to the LVT or acquisitions by private negotiation outside the Act. LEASE think that cases determined at the LVT might represent around 10% of all acquisitions but they say that this is just educated conjecture.

ELS STARTS COLLECTIVE ENFRANCHISEMENT FOR LEASEHOLDERS IN THE HEART OF KENSINGTON

6th JUNE 2007 - Press Release

LONDON, 6th June, 2007 --- Enfranchisement & Leasehold Solutions (ELS) announced today that it has reached agreement with the leaseholders at 83-85 Queens Gate, SW7 to conduct the collective enfranchisement of the property and enable the participant lessees between them to obtain the freehold.

ELS has just arranged for the Initial Notice to be served on the owners of the freehold, Cawarra Properties Ltd, after 11 out of the 15 flats decided to participate in purchasing the freehold.

EVENING STANDARD/HOMES & PROPERTY

WEDNESDAY 27 JULY 2005

Jonathan Sharpe realised the Wellcome Trust planned to sell the freehold of his 1870s block in South Kensington when its managing agent came to value the property. So, when the letter of notification arrived in February 2004, he and his five fellow leaseholders were prepared. They all had only 44 years left on their leases and all wanted to buy the freehold. Under the 1987 legislation, they had two months to act.

Andrew Lyndon-Skeggs of ELS with Jonathan Sharpe.They decided to use Enfranchisement & Leasehold Solutions (ELS), a one-stop firm that charges a fixed fee and employs panels of surveyors and lawyers to keep costs down.

The 1987 law locked the leaseholders into Wellcome's asking price, but ELS's Andrew Lyndon-Skeggs arranged a second valuation: if there had been a significant difference, he would have advised enfranchisement under the 2002 Act. He also suggested the leaseholders sign a participation agreement to stop anyone from dropping out.

Wellcome, having had its offer accepted within the deadline, had a month to submit a draft contract. By August, the sale was completed. "This is one of the smoothest we've done," says Lyndon-Skeggs. "Almost invariably we get 50 per cent participation, but 100 per cent is unusual. And they knew one another, which, again, is quite unusual."

EVENING STANDARD/HOUSES & PROPERTY

WEDNESDAY 10 NOVEMBER 2004

Karen Menzies is "absolutely calm" despite having three enfranchisements under way, one at the five-flat Chelsea block where she lives, and two more investment properties, also in Chelsea. Andrew Lyndon-Skeggs of Enfranchisement and Leasehold Solutions (ELS) is project-managing the lot.

Andrew Lyndon-Skeggs of ELS with Karen Menzies.ELS acts for blocks of between four to 400 flats, charging a fixed fee for each block. It takes on the entire project, from setting up a freehold company to finding a managing agent. Costs are kept down, partly by using the firm's own specialist panels of solicitors and surveyors, but mainly by the keen recruitment of leaseholders.

"We nearly always achieve 50 per cent of the leaseholders," says Lyndon-Skeggs. "We spend time and trouble talking to those who are reluctant."

Says Karen: "For me, ELS has become the heart and soul of the project and makes it easy. You sit down with a large cup of tea and read the documentation, and, with every question you might have, the answer is there."

An Englishman's home is his castle: or is it?

Property People Magazine: October 2007

To compound all of this, there are the added difficulties of changing legislation, a shortage of solicitors and surveyors with in-depth expertise, the
human problems of co-ordinating a group of disparate lessees, many of whom may be absent from the block, plus the challenge of countering the commercial professionalism of the larger landlords, and the intractability of some
of the smaller landlords.

This formula has proved popular and ELS is now conducting a large number of enfranchisements of all types and sizes of blocks throughout London and beyond.
Every enfranchisement differs and it is almost certain that each will have its own particular problems. However, the essential elements of a typical collective
enfranchisement are as follows:

Andrew Lyndon-Skeggs is the founder and managing director of ELS
email: anls@els-els.com; www.els-els.com.
www.ppmagazine.co.uk october 2007 property people

Property People : 11th November 2004

The Enfranchisement Revolution

The Commonhold and Leasehold Reform Act (CLaRA) 2002 marks a paradigm change in the evolution of our feudal system of property ownership, says Andrew Lyndon-Skeggs (right).

Download the complete article, "The Enfranchisement Revolution"as a PDF file (320k).

PRESS INTERVIEW:

ELS: THE COMPLETE ENFRANCHISEMENT SERVICE

Given its 'tripartite' formula, it is probably fair to say that ELS (Enfranchisement & Leasehold Solutions Ltd) is unique in the field of enfranchisement. ELS undertakes the entire process, from start to finish, covering and co-ordinating all of the work involved; for each project the fee is fixed from the outset, including the legal and surveying work; and ELS has exclusive access to a very substantial fund that can provide finance if specifically requested.

It is important to note that ELS is not simply a 'project manager' but rather a complete one-stop shop, albeit that ELS works closely with its panel of tip-top professionals, including surveyors and solicitors.

Amazingly, the fees chargeable by ELS are remarkably competitive and ELS likes to think that, like for like, its single, fixed fee is almost always less than the equivalent, chargeable on an hourly basis by solicitors and surveyors.

Heartening also that ELS is prepared by take on all types and sizes of enfranchisement projects, though these are generally in Central London and, from preference, larger blocks of flats.

As a result of its comprehensive service, the fixed competitive fee, and access to finance, ELS is being called upon by a huge number of prospective candidates for enfranchisement ..... and is delighted that this is the case!

A fair proportion of those who contact ELS are lessees from blocks that have suffered from bad management, poor landlords and situations where enfranchisement projects have run into difficulties.

Certainly, there is considerable scope for enfranchisement to go wrong. It is complicated; it is a specialist field little understood by most surveyors and solicitors; the laws are constantly changing and, perhaps above all, it involves people! A significant aspect of enfranchisement is the co-ordination of a group, maybe a large group, of disparate lessees, maintaining enthusiasm over the course of the lengthy enfranchisement process.

It is not always easy to take on projects that have run into problems and, sometimes, ELS will simply endeavour to assist, with free advice, to solve a specific problem. In other cases ELS will take over the project, though its preference is to be involved from the outset.

Problem solving is at the core of the ELS philosophy, deriving in large measure from the personal and professional character of their managing director, Andrew Lyndon-Skeggs. Having read Land Economy at Cambridge University, Andrew has spent over 35 years in the property industry, mainly in commercial and residential development. It also has to be said that he is scrupulously honest!

Accordingly, though ELS is delighted to take on all types of enfranchisement, or indeed acquisitions outside the scope of enfranchisement, nevertheless ELS particularly warms to large and complicated projects.

At present, ELS has approximately 100 projects in hand including 65 actively underway at various stages, a number that is increasing daily!

The current projects range from blocks of 2 flats up to in excess of 300 flats, plus lease extensions and individual houses. Some of ELS's larger projects are outside the scope of Collective Enfranchisement, generally as a result of non-residential content in excess of 25%. With these, ELS is enabling the lessees to solve their management problems, or acquire their freeholds, by other means.

But the enthusiasm that ELS shows for enfranchisement goes well beyond the immediate confines of their individual appointments. ELS only works for lessees and is therefore passionately concerned to see that lessees get the best deal. How is this reflected? Well, firstly, the fees that ELS charges are undoubtedly competitive . Few people realise just how much work is involved and, not infrequently, express surprise at the end of the project by the amount of work that has been done for the modest fee involved.

Secondly, ELS is very thorough is taking each project step-by-step through the various processes involved, and places particular importance on a robust and all embracing Participation Agreement. As Andrew Lyndon-Skeggs points out "this does much more than simply bind together the participant lessees". The Participation Agreements drawn up by ELS, with their solicitors, set out the rights and obligations of the various parties, the company structure, the shareholdings and financial contributions for both participant and non-participant flats, the circumstances of future sales, the essential elements for successful ongoing management etc.

In addition, ELS spends time researching the field of enfranchisement, giving lectures at conferences, attending specialist committees, advising professional organisations, and lobbying on behalf of lessees. In terms of 'lobbying on behalf of lessees' what does ELS have in mind? "In a nutshell" responds Andrew Lyndon-Skeggs "some of the remaining elements within the 2002 Act legislation, and the potential power of the larger landlords to drive up the cost of enfranchisement, contrary to the intent of the legislation".

The 2002 Act has been helpful in bringing the advantages of enfranchisement to a wider range of lessees. The elements of the legislation brought into force so far, though complicated, have nevertheless been helpful to tenants. However there remain some sections of the Act that have yet to come into force and amongst these are provisions that, though well intentioned, could make enfranchisement, particularly for larger blocks, well-nigh impossible.

Andrew Lyndon-Skeggs is also concerned by the potential for the larger landlords, to use their financial muscle to drive the enfranchisement process in their favour. It is clear that the legislation intends that the financial benefits of enfranchisement should be split equally between the landlord and the tenant, "and this is entirely reasonable" says Andrew Lyndon-Skeggs. At present, this is generally the case, and enfranchisement offers a 'good deal' for both parties, with potential for recourse to the Leasehold Valuation Tribunal (LVT), if necessary.

But there are signs that this could be changing. The valuation process for enfranchisement is specialist and complicated, resting on statute, practise and precedent. There are a number of subtle ways in which the process can be influenced, including yield and discount rate, hope value and relativity. The only way to fight the case is at LVT, possibly followed by the Land Tribunal.

However, this is expensive and time consuming and, as a result, lessees may well jib at taking this course. For the larger landlords, by contrast, any advantage they can gain at LVT will benefit not only the current property, but also many others in addition and, accordingly, it is worth their while to commit time and money to each case, well beyond the means of most lessees. As a consequence, the landlords may benefit from precedent not only from LVT cases but also situations where lessees have paid over the odds, in order to avoid the cost of LVT.

"It is one of the reasons why I believe it is extremely important to have organisations such as ELS" says Andrew Lyndon-Skeggs "who are well informed and experienced, fighting the case for the lessees".

Meanwhile, don't be disheartened, enfranchisement, particularly Collective Enfranchisement, is thoroughly worthwhile for most long leasehold tenants. It preserves the long term value of the property, it offers an immediate financial gain which is almost invariably more than the cost involved, total control over the management and a corresponding reduction in service costs, plus the sheer pleasure of jointly "owning your freehold"!

ELS much looks forward to working with many lessees and enabling them to acquire many freeholds (or long leases), in the future.