The Meaning of Collective Enfranchisement
The occupational leases would remain and the terms and conditions contained in them would remain unchanged. But instead of an external ground landlord, the leaseholders will collectively become their own landlord enabling important management decisions to be made by the participating leaseholders on a democratic basis. The right to enfranchise differs from the right to manage in at least two respects namely:
• It is a more expensive option — as leaseholders will not only be taking over management responsibilities but will buy-out the landlord’s interest. In fact most disputes about freehold enfranchisement are not about the principle of enfranchisement but how much the leaseholders should collectively pay the landlord for the freehold and any intermediate leasehold interests. There are complex statutory formulae for calculating this.