Collective enfranchisement
Collective enfranchisement is the legal right of leaseholders in a block of flats to join together and buy the freehold of their building, at a price set by a statutory formula and whether or not the freeholder wishes to sell. The right is set out in the Leasehold Reform, Housing and Urban Development Act 1993 and applies where the building and the leaseholders meet the qualifying criteria.
Who qualifies for collective enfranchisement
The building must contain at least two flats, and at least two-thirds of them must be held by qualifying tenants, meaning leaseholders whose lease was originally granted for more than 21 years. To bring a claim, leaseholders owning at least half of the flats in the building must take part, and where there are only two flats, both must participate. No more than 50% of the building may be in non-residential use, a limit raised from 25% by the Leasehold and Freehold Reform Act 2024 and in force since 3 March 2025, which brought many mixed-use buildings with shops below into scope. Since 31 January 2025 there is no longer any requirement to have owned the flat for two years first. Buildings with a resident landlord in a conversion of four or fewer flats, and those owned by the Crown or National Trust, are generally excluded.
How the process works
Participating leaseholders usually form a group and sign a participation agreement covering costs and decisions, then serve a formal notice on the freeholder. A surveyor values the freehold, the leaseholders pay the premium plus the professional costs, and on completion the freehold is normally held through a company the leaseholders own. From there they can grant themselves long leases, typically 999 years at a peppercorn rent, and take control of how the building is managed. A straightforward claim usually takes six to twelve months. From working with self-managing landlords, the hurdle that catches buildings out most is not the building criteria but the participation threshold, because persuading half the flats to commit and to fund their share takes coordination.
Collective enfranchisement compared with Right to Manage
Collective enfranchisement and the Right to Manage are often confused. The Right to Manage lets leaseholders take over the management of their building without buying anything, while collective enfranchisement is the purchase of the freehold itself. Enfranchisement costs more and is more involved, but it gives full ownership and the ability to extend leases and remove ground rent, rather than management control alone. A building that enfranchises can later convert to commonhold if the owners choose.
Frequently asked questions
How many leaseholders are needed to buy the freehold?
At least half of the flats in the building must take part, with each held by a qualifying leaseholder. If the building has only two flats, both must participate.
How long does collective enfranchisement take?
A straightforward claim usually completes in six to twelve months, though disputes over the price or delays in valuation can extend it. The premium and professional costs should be budgeted for before serving notice.
Can I convert my leasehold flat to commonhold?
Leaseholders who have already bought their building's freehold through collective enfranchisement are best placed to convert.
