What is "enfranchisement" in leasehold terms?

Enfranchisement is defined as a legal process that allows leaseholders to acquire the freehold interest of their property. This is significant because it provides leaseholders with greater security and control over their property, effectively freeing them from the constraints of the lease agreement that typically includes restrictions and obligations determined by the freeholder.

The process of enfranchisement is particularly beneficial for leaseholders whose leases are nearing the end of their term, as it enables them to secure ownership and eliminate potential issues that may arise from having a short lease. By purchasing the freehold, leaseholders become the outright owners of the property and can manage it as they see fit, including making alterations, extending the lease, or developing the property without needing permission from a freeholder.

This legal avenue is an important component of leasehold law, as it promotes tenant empowerment and the eventual transition from leasehold to freehold ownership, giving them more rights and a stake in their property.