Buying the freehold: collective enfranchisement explained

Leasehold means you own a property for a fixed period. Ownership returns to the landlord when the lease ends. Most flats are leasehold. For flats, the statutory route to buying the freehold with other leaseholders is collective enfranchisement under the Leasehold Reform, Housing and Urban Development Act 1993. This article explains the current legal framework and flags reforms that are passed but not yet in force.

The right to buy the freehold

Qualifying tenants of flats have a statutory right to collective enfranchisement. The freehold can be acquired on their behalf at a price determined under the 1993 Act. The relevant date for the claim is the date the initial notice is given, and that date drives the valuation. This is the flats regime; the separate statutory route for houses comes from the Leasehold Reform Act 1967.

Who qualifies

A collective claim needs qualifying tenants of two or more flats. The total number of flats held by qualifying tenants must be at least two-thirds of the flats in the premises. The premises must be a self-contained building, or a self-contained part, either structurally detached or divided vertically. The claim does not apply if the non-residential floor area exceeds 25% of the premises.

The process: notice and counter-notice

The statutory process starts with an initial notice. That notice must be given by qualifying tenants of at least one-half of the flats, and it must specify a counter-notice date at least two months after the relevant date. The landlord’s counter-notice must either admit the claim or say it is not admitted and give reasons.

What it costs

Under current law, the nominee purchaser pays the landlords reasonable costs of a collective claim. That includes investigating the claim, deducing title and valuation. The verified facts here do not give a full method for calculating the freehold price. They confirm only that the price is determined under the 1993 Act and that valuation is tied to the date of the initial notice.

Right of first refusal

Leaseholders can ask the landlord to sell the freehold at any time. Separately, when a landlord sells the freehold of a building containing flats, leaseholders will usually have to be offered the first chance to buy it. That is the right of first refusal. It is distinct from a collective enfranchisement claim.

The 2024 reform: what is not in force yet

The Leasehold and Freehold Reform Act 2024 will raise the non-residential limit for collective claims from 25% to 50%, but that change is not yet in force. The Act will also add intermediate-interest acquisition and a right to require leaseback after collective enfranchisement, and those changes are also prospective only. A government consultation published on 15 July 2026 and closing on 23 September 2026 is working on new process-costs exceptions and maximum recoverable costs under the 2024 Act.

Key facts

Source: legislation.gov.uk - LRHUDA 1993 s.1 — Guidance checked August 2026

Source: legislation.gov.uk - LRHUDA 1993 s.1 — Guidance checked August 2026

Source: legislation.gov.uk - LRHUDA 1993 s.3 — Guidance checked August 2026

Source: legislation.gov.uk - LRHUDA 1993 s.3 — Guidance checked August 2026