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Leasehold Enfranchisement UK: Buy the Freehold

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Part ofLeasehold Enfranchisement Forms UK

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
If you own a flat on a long lease, you may have wondered whether you and your neighbours could take control of the building by buying the freehold yourselves. The answer, in many cases, is yes. Collective enfranchisement is the statutory route that lets qualifying leaseholders in a block of flats join forces and compel the freeholder to sell. It was introduced by the Leasehold Reform, Housing and Urban Development Act 1993 and remains one of the more powerful tools available to flat owners who want longer leases, more control over service charges, and a say in how their building is run. This guide walks through who qualifies, what the building itself needs to look like, how to prepare a claim, and the main procedural milestones once the claim is formally started. It is written for leaseholders rather than lawyers, so the focus is on practical understanding.

Overview

Collective enfranchisement is the legal right for a group of qualifying leaseholders in a block of flats to buy the freehold of their building, together with any intermediate leases sitting between them and the freeholder. Once the purchase completes, the leaseholders (usually acting through a company they have set up for the purpose) become their own landlord.

This opens the door to extending leases at cost, choosing the managing agent, and budgeting service charges more transparently. The right is statutory, which means the freeholder cannot simply refuse to sell if the legal conditions are met. Instead, the price is determined under a valuation formula set out in the 1993 Act, and disputes can be resolved by the First-tier Tribunal (Property Chamber).

The process is technical and can take months, but for many leaseholders it is the most effective way of protecting the long-term value of their flats and escaping the frustrations of an absentee or difficult freeholder.

Key steps

  1. Check whether the building and leaseholders qualify. The block must be a self-contained building or part of one, contain at least two flats let to qualifying leaseholders, and have at least two-thirds of the flats held on long leases (broadly, leases originally granted for more than 21 years). No more than a quarter of the internal floor area, excluding common parts, can be in non-residential use. A leaseholder who owns three or more flats in the building does not qualify.
  2. Get the numbers and the structure in place. Before anything is served on the freeholder, instruct a surveyor experienced in enfranchisement valuations to estimate the premium payable. Work out how the purchase will be funded, how costs will be split between participating leaseholders, and who is in and who is out. Most groups incorporate a nominee purchaser company limited by guarantee to hold the freehold once acquired.
  3. Sign a participation agreement. The participating leaseholders should enter into a written agreement setting out how decisions will be taken, how the premium and professional fees will be shared, what happens if someone drops out, and how the nominee company will be run. Given the sums involved and the length of the process, this agreement prevents misunderstandings later and gives the group a clear framework for working together.
  4. Serve the initial notice under section 13. The formal claim begins when the participating leaseholders serve a section 13 notice on the freeholder. This notice must identify the premises, specify the proposed purchase price, name the nominee purchaser, list the participating tenants, and set a date by which the freeholder must give their counter-notice (not less than two months away). The notice must be accurate, as defects can invalidate the claim.
  5. Negotiate, agree terms, and complete. The freeholder serves a counter-notice either accepting the right to enfranchise or disputing it. Assuming the right is accepted, the parties negotiate the premium and terms of transfer. If agreement cannot be reached, either side can apply to the First-tier Tribunal to determine the price. Once terms are settled, the transfer completes and the nominee company becomes the new freeholder.

Common questions

If you're dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £89.

Common questions

Q How many flat owners need to take part?
At least half of the qualifying leaseholders in the building must participate in the claim. So in a block of ten qualifying flats, you need at least five to join in. In smaller buildings with only two flats, both leaseholders need to participate. It is usually worth getting as many neighbours on board as possible, because a larger group spreads the cost and reduces the risk of the claim faltering if someone changes their mind.
Q How much does it cost to buy the freehold?
The premium depends on factors including the unexpired term of the leases, ground rents payable, the value of the flats, and 'marriage value' where applicable. A specialist enfranchisement surveyor will produce a valuation range. On top of the premium, the leaseholders pay their own legal and valuation fees and, under the legislation, are also liable for the freeholder's reasonable professional costs in dealing with the claim, though not the costs of any tribunal proceedings.
Q Can the freeholder refuse to sell?
Not if the qualifying conditions are met and the procedure is followed correctly. That is the point of the statutory right: it gives leaseholders the ability to compel a sale. The freeholder can challenge whether the right exists (for example, by arguing that too much of the building is in commercial use) and can dispute the price, but cannot simply decline to engage. Disputes are resolved by the First-tier Tribunal (Property Chamber).
Q What is a 'qualifying tenant'?
Broadly, a qualifying tenant is someone who holds a flat on a long lease, meaning a lease originally granted for more than 21 years. Business tenancies are excluded, as are leaseholders who own three or more flats in the same building. There can only be one qualifying tenant per flat at a time, so if joint owners hold a lease together, they count as a single qualifying tenant for the purposes of the numbers.
Q How long does the process take?
Most collective enfranchisement claims take between six months and eighteen months from serving the initial notice to completion, though complex cases or those that end up at tribunal can take longer. The bulk of the time is usually spent on valuation negotiations and conveyancing rather than on the procedural steps themselves. Preparation work before the notice is served, including incorporating the nominee company and signing the participation agreement, can also add several weeks.
Q What happens to our leases after we buy the freehold?
The existing leases continue, but because the nominee company (owned by the participating leaseholders) is now the landlord, the leaseholders effectively become their own landlord. A common next step is for participating leaseholders to grant themselves extended leases, often of 999 years at a peppercorn rent, which removes ground rent and future lease-length concerns. Non-participating leaseholders keep their original leases and the freeholder's rights and obligations under them.
Q What is the difference between collective enfranchisement and the Right to Manage?
Right to Manage (RTM) transfers management functions such as repairs and service charge administration to a leaseholder-controlled company, but the freeholder still owns the building. Collective enfranchisement goes further: it transfers ownership of the freehold itself. RTM is generally cheaper and quicker, while enfranchisement costs more but gives leaseholders full control, including the ability to grant themselves long lease extensions.
If you're dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.