Enfranchisement Procedure

Where a person proposes to acquire the fee simple in land or an extension of his leasehold estate under the Act, he must serve a notice in prescribed form on his immediate landlords and every person with superior interests, to them; every mortgagee; and every owner of any encumbrance affecting the land.

Where the notice is served, persons on whom it is served must take every necessary step within their power to effect the conveyance free from encumbrances of the fee simple interest and any intermediate estates to the person proposing to acquire the fee simple.

Encumbrances do not include mortgages on the estate of the applicant. Where the fee simple is acquired, the mortgage attaches to it. Where there was a mortgage of the prior leasehold interest, the mortgagee is entitled to possession of the deeds, which must be delivered to him within six weeks.

A person proposing to acquire the fee simple interest may serve a notice seeking information on his immediate lessor or on a person to whom he pays rent. The notice is to be in a prescribed form. He may serve notices on any person he believes to be a superior lessor or agent of his.

Where a notice is served, the person on whom such notice is served must furnish information required to be furnished. If he fails to do so, the person serving the notice may apply to the Lands Tribunal, which may make such order as it thinks necessary with a view to compelling such person to furnish the information.

Where the person who is required to join the fee simple acts in a fiduciary capacity or has a limited estate or is subject to restrictive covenants on his lease and by that reason, is incapable of conveying the fee simple as required, the Lands Tribunal may empower the person so required to convey or join in conveying the fee simple. The Lands Tribunal may appoint an officer of the Tribunal to execute a conveyance where the person required to convey the land is a minor, is unknown or unascertained or fails or refuses to execute such conveyance. Similarly, the Lands Tribunal may appoint a person on receipt of the land, in respect of the interest in the land or other person as the Tribunal think fit, to represent the unknown and unascertained person in all proceedings in connection with the conveyance of the land. Where the Land Tribunal appoints a person to execute a conveyance, the purchase monies are to be paid into court and on payment all estates, rights, and interests against the land of the person are to attach to the money. The court may make such order as to disbursement and distribution of money as it deems proper.

A person who proposes to acquire the fee simple is liable for the reasonable costs and expenses actually and necessarily incurred in complying with the provisions of the Act by persons on whom notices are served.

Where a person is entitled to acquire the fee simple interest, serves notice of his intention to acquire the fee simple, every lessee shall be entitled to have the rent payable by him in respect of the land apportioned between the land in respect of which the fee simple is to be acquired and other land. The rent may be reserved, apportioned between different parts of the land comprised in the same lease.

The purchase price of the fee simple is the amount which at the date on which notice is served, the land is sold on the open market would be expected to be realized on the assumption that the buyer and seller were willing to sell a freehold interest subject to the lease, without the right to buy the fee simple and without the right to extend or that an extension has happened. The price is to be subject to deductions, if any, in respect of defects entitled. The price cannot be less favorable to the lessee by reference to either a transaction happening after 1979 involving the creation or transfer of an interest superior to that of the lessee’s or an alteration since that date of the term with which the interest is held.

Certain provisions are made to deal with pyramids of superior title. In certain cases, the tenant may deal with the immediate lessor. Other lessors may elect to be separately represented or may deal directly, if they so choose with the lessee. The purchase price is fixed, if necessary by the Land Tribunal. Lessors and superior lessors owe certain duties of cooperation.

The conveyance of the fee simple is effected to discharge the mortgage on the lessor’s interest so conveyed. The lessee is to pay the purchase price to the mortgagee in satisfaction of the mortgage debt. Where the payment is not sufficient to discharge the mortgage, it is without prejudice to any rights and remedies for enforcement which the mortgagee might have had.

The lessee may opt for a 50-year extension to his lease. This is a graft or addition to the existing lease. The ground rent is to be the fair, modern ground rent which may be subject to revision every twenty-five years. There are similar provisions to those above for the purpose of ensuring cooperation of superior lesser to the extent necessary to give effect to the extension.

The old lease is to be extended for up to 50 years and shall be subject to such terms and conditions as the party may agree or the Land Tribunal determines. Where the Land Tribunal fixes the covenants and conditions, the tenant is to be responsible for rates and taxes in respect of the land other than the lessor’s income tax. The rent shall be such as the parties agree or the landlord considers fair having regard to ground rents created on similar land in the area in which the land is situated within one year of the date of service of the notice. If none have been created, then it is to be on the basis of a fair, modern ground rent.

There are restrictions on the right to acquire the fee simple and obtain an extension of the lease. The lessor may apply to the Lands Tribunal for an order that he may resume possession of the land on the expiry of the lease for any one or more of the following grounds: that his interest is purchased before 30 July 1967 and the land is reasonably required for him for the purpose of occupying buildings thereon as his main or principal residence or for that of an adult member of his family or beneficiaries under a trust; that he bona fide has agreed to pull down, rebuild, and reconstruct the whole or a substantial part of the buildings on the land comprising the lease; that he requires vacant possession of such land for the purpose of carrying out a scheme of development of the property including the land.

Where the lessor or superior lessor is a local authority, a Town Commissioner, Northern Ireland Housing Executive or bodies designated by statutory instrument, they may apply to the department for a certificate that it is not in the public interest that the fee simple interest should be acquired. If the Minister so certifies and the body sends to the lessee a copy of the certificate within six weeks, the right to acquire the fee simple does not apply.

Where, but for the above provision, a person would be entitled to an extension of his lease or to acquire the fee simple, compensation is to be paid by the immediate lessor to the lessee. The basis of compensation is to set out in the legislation. An application for the compensation is made to the Land Tribunal, which determines compensation in accordance with the statutory provision. Where a lessee has a right to acquire the fee simple or obtain an extension of his lease, he shall be entitled to continue in occupation until he has been granted an extension of the lease, acquired the fee simple, or the lessor obtains an order from the Lands Tribunal requiring possession of the land.

There are provisions making the rights to acquire the fee simple and obtain a lease extension binding on persons who would otherwise be subject to legal disability.

Questions regarding the acquisition of the fee simple, apportionment of rent, purchase price, entitlements, etc. are to be determined by the Land Tribunal. The Land Tribunal may seek the assistance of a Commissioner on valuation matters. The legislation does not apply to lands vested in the National Trust.

“Notwithstanding the acquisition of the freehold interest, covenants and conditions which protect or enhance the amenity of any land occupied by the owner of the lessor’s estate or relating to the performance of a duty imposed by statute on such an owner or a right of way or other easement over land demised by the lease or rights of drainage or other rights necessary to secure or assist the development of land other than that in the lease, then such covenants, conditions, and agreements remain in full force and effect notwithstanding the acquisition of the leave. They are enforceable by the owner and his successors in title as if the acquisition had not occurred.