The Mayor's Executive Decision Making committee was scheduled to consider the enfranchisement of two separate properties. This process involves leaseholders acquiring the freehold interest of their properties.

Enfranchisement of 33 & 33a Approach Road and 11-12 Wine Close

The committee was scheduled to discuss the enfranchisement of two properties: 33 & 33a Approach Road, E2 9LY, and 11-12 Wine Close, E1W 3RQ. In July 2025, the Council received valid section 13 notices from the leaseholders of these properties, indicating their intention to acquire the freehold. Each property consists of a house with two leasehold flats.

The report indicated that the Council is legally required to respond to these notices by 30 September 2025 to enter into negotiations regarding the terms of enfranchisement, including the premium to be paid by the nominee purchasers. The report detailed the proposed premiums from the nominee purchasers, which were £22,232 for the freehold interest and £75.00 for the garden land at 33 Approach Road, and £8,500 for the freehold interest and £50.00 for additional land at 11-12 Wine Close.

However, the Council's own valuation suggested that higher premiums could potentially be secured, estimated at £31,000 for Approach Road and £14,500 for Wine Close. The Council also intended to negotiate for overage provisions, entitling them to 50% of any future increase in the value of the transferred land for a period of 25 years. The report noted that the Council would not impose usual easements or restrictive covenants as the blocks and land are self-contained. The transfer of these properties would mean the Council would no longer be responsible for compliance areas such as Fire Risk Assessments, remediation, and legionella testing for these blocks.

The report referenced the Leasehold Reform, Housing and Urban Development Act 1993¹, which governs the process of leasehold enfranchisement. This legislation outlines the conditions under which leaseholders can collectively acquire the freehold of their building, including requirements for the percentage of qualifying tenants, the proportion of commercial use, and the length of leaseholds. The report also mentioned the upcoming Leasehold and Freehold Reform Act 2024², which will alter the requirement for nominee purchasers to cover the Council's costs for assessing eligibility and valuation.

The report recommended approving the enfranchisement of these two properties and proceeding with the negotiation of the terms. The decision was not classified as a key decision.