Enfranchisement
After 1997, a fee farm grant may not be granted. An agreement to make a fee farm grant operates as an agreement to grant a fee simple subject to any fine or consideration specified in the agreement but free from the fee farm rent so specified and any covenants and other provisions that are connected with the rent or are for the benefit of an intended rent owner, as such. Provisions are connected with the rent if they are concerned with the amount of the rent or its payment or recovery or otherwise concerned directly or indirectly with it.
After 1997, a rent charge may not be created at law or in equity. An agreement for a rent charge is void to the extent it provides for the creation of a rent charge, which is prohibited. The prohibition does not apply to a rent charge as an annuity, a rent charge which is payable under an agreement to the owner of legal estate and land contingently upon his being made to pay the whole or part of a rent in respect of all or part of the land or in respect of a large area of land of which that forms part or in charge under any statute or in accordance with the requirements of an order of court.
After the commencement of the 1997 legislation, a lease of a dwelling house for more than 50 years cannot be created at law or in equity. Any agreement for such a lease is prohibited. Any instrument which purports to be such a lease, or is an agreement for the same has effect as an agreement to acquire the fee simple in the land at no expense to the intended lessee and to convey the fee simple to the intended lessee at no expense other than the lessee’s own cost and without consideration, save a fine specified in the agreement.
Where the leasehold interest purports to be subject to a mortgage, the mortgage by fee simple when conveyed is evidently created in relation to the fee simple.
A lease is to be deemed to be a lease for 50 years even when expressed to be for less, if by virtue of any provision or other collateral agreement, it is capable of being extended or renewed for periods which united could aggregate exceed 50 years.
The prohibition on the creation of a long lease does not apply to the following categories: a concurrent lease; a long lease by way of mortgage; an equity-sharing lease; a long lease of a flat; a long lease granted by the National Trust.
Provisions in existing fee farm grants; leases of dwelling-house for more than 50 years; or collateral agreements providing for an increase or review of a ground rent have no effect. This does not apply to a building lease or a fee farm grant for purposes corresponding to those of a building lease merely because there is an increase in the ground rent related to periods or events in the progress of building or related activities.
The following categories of persons are entitled to acquire their fee simple under the Leasehold (Enlargement and Extension) Act (Northern Ireland) 1971. They may acquire the fee simple on an intermediate estate. They may obtain an extension of their leasehold estate on one occasion for a term of not more than fifty years.
The rights of enlarging the leasehold estate into a fee simple may be exercised at any time prior to the expiry of the lease or the expiry of three months from the service on the lessee by his lessor or any superior lessor of notice of the expiry, whichever is later. The right is not exercised during the period of extension of the leasehold estate granted under the Act.
Where a person seeks an extension of his leasehold estate, he must serve a notice within the five years prior to the end of the term and within three months of the end of the term or service of notice by his landlord of expiry, whichever is later.
The above rights apply to every person who holds as a lessee under a lease first granted for more than twenty-one years; where the land does not exceed one hectare; where there are buildings on the land; where the land not covered by buildings is subsidiary and ancillary to the land so covered; and where the person occupies the buildings in whole or in part by virtue of the lease as his sole or principal residence and is not by reason of such occupation in breach of his lease; and if the lessee will expire within fifty years of the date on which he serves notice, the lessee has been on that date a person qualified (occupying as his principal residence for a period of five years or periods amounting to five years within a period of 10 years ending on that date).
A person is deemed to be qualified if he occupies the buildings in whole or in part as his sole or principal residence for such period or periods in his capacity as a member of a family of his predecessor in title. The rent must not exceed a ground rent.
The above provisions do not apply to persons who hold land under the following leases: a lease of land which is used for the purpose of a business unless the buildings on the land are used in whole or in part as the lessee’s sole or principal residence; a lease of land where the buildings on the land are divided into four or more self-contained and separate flats; a lease containing a covenant or condition to erect a building where the covenant has not been complied with; a lease of agricultural land, including farmhouses and farm buildings; a mining lease; a lease linked to an office or employment; a lease granted in breach of a prohibition in any other lease; a lease granted by the Northern Ireland Housing Executive or housing association.
The right applies to certain housing leases at a rent of less than £10 per annum.