How to buy your freehold together (collective enfranchisement)

What it is

Collective enfranchisement lets qualifying flat owners buy the freehold of their building together, whether or not the landlord wants to sell. They buy through a nominee purchaser, usually a company owned by the participating leaseholders.

Who qualifies

• At least two flats, and at least two-thirds held by qualifying tenants (long leaseholders).
• No more than 50% non-residential floor area (since March 2025).
• At least half of the qualifying tenants must take part.
• Since January 2025 there is no need to have owned the flat for two years.

The price

The premium is set by a valuation formula: the value of the freehold, a share of marriage value where leases are under 80 years, and compensation for other losses. Get a specialist valuation before starting. The 2024 Act will remove marriage value and set prescribed rates, but those parts are not yet in force.

The main steps

1. Agree a group, a participation agreement and how costs will be shared.
2. Form the nominee purchaser company.
3. Get a valuation and appoint a solicitor.
4. Serve the initial notice on the freeholder.
5. Receive the counter-notice, negotiate, and if needed apply to the tribunal.
6. Complete the purchase. The company is now your landlord.

After you buy

Your company now owns the building and has the landlord’s duties: insurance, repairs, service charges, compliance and company filings. Many blocks then grant each participant a 999-year lease at a peppercorn ground rent.