London Leaseholders Win Collective Enfranchisement Case against Newham Council

Expert Leasehold Solicitor Helps London Leaseholders Overcome Freehold Council

In a major legal victory, a group of leaseholders in Newham, East London successfully obtained a Court Order in their collective enfranchisement claim against their local authority freeholder, Newham Borough Council—with expert guidance from leasehold solicitor Ricky Coleman of Peppercorn Law.

The Council was even ordered to pay the leaseholders costs of the Court application.

This case highlights the importance of using a specialist leasehold solicitor when pursuing the purchase of your building’s freehold, especially when dealing with large or obstructive landlords such as local authorities. Click here for more information on our fixed fee collective enfranchisement service

The Estate and Leasehold Legal Strategy

The estate in question comprised several purpose-built blocks of flats, with shared gardens and parking spaces. Ricky Coleman advised the leaseholders on structuring the claim to ensure each block met the eligibility criteria for enfranchisement, as its not currently possible to enfranchise an estate in one claim.

One block, containing a significant commercial unit, was unfortunately excluded from the claim due to having too much commercial floor space. However the position on this is set to change with leasehold reforms due in 2026/2026.

Who Can Qualify for Collective Enfranchisement in London?

To bring a collective enfranchisement claim, leaseholders must meet specific legal criteria under the Leasehold Reform, Housing and Urban Development Act 1993:

• The building must contain at least two flats.

• At least two-thirds of the flats must be held by qualifying tenants (leaseholders with long leases of more than 21 years).

• At least 50% of those qualifying leaseholders must participate in the claim.

• No more than 25% of the building can be used for non-residential purposes (in this case a ground floor shop preventing one block of flats from enfranchising)

  
  

Understanding whether your building meets these thresholds is essential before starting a claim, read our guidance note on collective enfranchisement here.

Initiating the Claim: Section 13 Notice and opening offer for freehold price

Once valuation advice was obtained, a Section 13 notice was served, initiating the collective enfranchisement process and fixing the valuation date before the lease terms reduced further. The claim was brought by a specially formed company representing the leaseholders, with the intention of acquiring and managing the freehold title.

The claim included several detailed legal proposals relating to rights of access over other shared parts of the estate and use of parking spaces. While Newham Council responded with a counter-notice and agreed to many terms, they failed to cooperate in finalising the transfer deed and producing a compliant Land Registry plan.

The leaseholders were ignored for months and the process was unable to complete, seemingly for no reason other than an under resourced council legal team.

Securing a Court Order to Compel Completion

To prevent the claim from lapsing due to statutory time limits, the leaseholders made an urgent application to the Central London County Court. Represented by Tanfield Chambers and guided by Solicitor Ricky Coleman, the leaseholders secured an order that:

• Required the council to issue a completion statement within a set period

• Allowed the leaseholders to pay into the Court Funds Office if the council delayed further.

• Permitted the Judge to sign the transfer on behalf of the freeholder, to prevent further obstructions to completion

• Enabled the leaseholders to deduct their legal costs from the freeholder’s purchase price - a significant additional sanction sought by the leaseholders solicitor

Leasehold Success in the Face of Obstruction

This case is a powerful example of how collective enfranchisement can become legally complex and time-sensitive. However, it also shows that with the help of an experienced leasehold solicitor in London, leaseholders can successfully overcome freeholder obstruction—even from local authorities.

Buy the freehold of your block with expert legal input from the start.

Need Help With a Collective Enfranchisement Claim in London?

At Peppercorn Law, we advise leaseholders throughout London boroughs including Camden, Islington, Hackney, Newham, Southwark, and beyond.

Whether you're considering:

• A collective enfranchisement claim

• Applying for a tribunal appointed manager

• A lease extension

• Serving a Section 13 or Section 42 notice

  
  

—we’re here to guide you through every stage of the process.