I thank you for acknowledging that I was not in error.
I do not think the point is entirely academic, and neither do you, or otherwise you would not have made such a fuss about it.
If the council ever develops this site in any way, and does retain the freehold, then it will be entitled to control the land use to a very substantial extent. Despite a long lease being a "virtual freehold" it isn't one; and it will be subject to covenants and other restrictions. Just as the legal title ensures for a long time, those restrictions will also.
Even if the law is changed to allow enfranchisement in the sort of case you are discussing, then those restrictions can still be preserved.
There are several examples in London of estates where houses were enfranchised under the Leasehold Reform Act, and where schemes have been sanctioned by the court, and registered in the local land charges register, which give the former landlord substantial management and regulatory responsibilites. The Dulwich College estate is an excellent example.
What is important is that any drafting is done carefully. |
