What is an 'enfranchisement'?

Enfranchisement refers specifically to the legal process that allows leaseholders, particularly those of residential properties, to collectively purchase the freehold of their buildings. This process is essentially a means for leaseholders to gain greater control over their property and is often pursued when the remaining lease term becomes a concern—such as when it shortens to a point that it decreases property value.

Collective enfranchisement typically requires that at least 50% of the leaseholders in a building agree to participate. Once the collective decision is made, they can then negotiate with the freeholder for the purchase, often requiring a fair valuation. This process empowers leaseholders by giving them full ownership rights of the property, as opposed to being bound by the terms of a leasehold arrangement which may come with restrictions and fees.

The other options describe different processes or documents unrelated to the concept of enfranchisement itself. For instance, terminating a lease early relates to lease terms rather than ownership, while a legal document for lease agreements does not encompass the idea of acquiring freehold rights. An evaluation of property conditions pertains to property assessments and would not be classified as enfranchisement.