Written question asked by Guto Bebb (Conservative) on Friday, 1 July 2011, in the House of Commons. It was due for an answer on Tuesday, 5 July 2011. It was answered by Grant Shapps (Conservative) on Monday, 11 July 2011 on behalf of the Department for Communities and Local Government.

Business Premises: Leasehold

Question: To ask the Secretary of State for Communities and Local Government whether he has assessed the effect of the provisions of the Leasehold and Commonhold Reform Act 2002 in respect of commercial properties on the management of an estate where commercial property benefits from the right to enfranchise.

Answer: Tenants (leaseholders) of commercial properties do not have the right to enfranchise under residential leasehold legislation.Under the ““Commonhold and Leasehold Reform Act 2002””, however, where leasehold houses on an estate are subject to a business lease, the leaseholders may—provided they meet certain qualifying criteria—qualify for enfranchisement. These include the term of the original business lease exceeding 35 years, and the leaseholder occupying the house as their only or main residence for the last two years, or periods amounting to two years in the last 10.Enfranchisement in these circumstances could result in changes to the management of an estate. No assessment has been made in England of the effects of the introduction of these criteria.

Secondary information