COVID-19 Legal Update: Leasehold Enfranchisement

‘Lockdown’ measures introduced by the government in response to the COVID-19 pandemic have impacted the enfranchisement sector in a number of ways. Tenants and landlords should obtain advice on their options and the action required because statutory rights and timetables in enfranchisement continue to apply.

Tenants’ considerations

Tenants must note that the term of their leases continue to fall (in particular where leases are likely to fall under 80 years the costs to extend a lease would increase significantly). Tenants should take both legal and valuation advice to ensure they can make claims in the current climate and be advised of the pros and cons of doing so.

Landlords’ considerations

During the government current restrictions, most, if not all offices are closed but a landlord must still ensure that any statutory notices are dealt with, within statutory time limits, or face the draconian consequences of missing deadlines. Unfortunately the enfranchisement legislation does not provide for service of notices (or applications) by email. However, landlords and tenants are encouraged to accept service of notices upon each other by email. We have led the way in seeking agreement to this protocol among other practitioners in enfranchisement.

Current claims

Where there is a current claim, the statutory timetable still applies. If a deadline is missed there are severe consequences for the defaulting party. The legislation does not allow for parties to extend deadlines. However the London Property Chamber has suspended all hearings and directions until 29 May 2020 and after that date, new hearing dates and directions will be issued. Regional Property Chambers are attempting to proceed as normal and in particular where it is appropriate to determine cases on the papers provided by the parties. Obviously this may change depending on the current situation.

Practical considerations:

Landlords and tenants must adhere to the statutory timetable.
Landlords and tenants should accept or request service by email.
Landlords and tenants must check with their legal representatives to ensure statutory time limits are kept and for any developments concerning the Property Chamber and Courts.

Please contact Samantha Bone for further information.

The information in this article was prepared on 3 April 2020. The law and practice is currently changing daily, so please check the up to date position before acting on anything you read here.