Collective enfranchisement
Collective enfranchisement
We鈥檒l help you harness the potential of your property.
Collective enfranchisement, or buying a share of a property freehold, can be complex 鈥� our experts are here to advise you through the entire process.
Collective enfranchisement is what happens when leaseholders purchase the freehold of their building. Having a share of your property鈥檚 freehold allows you to gain management control and increase the sale opportunities of the individual flats within the building.
Why partner with us on your collective enfranchisement
In-depth report
We carry out a comprehensive valuation report for you to make an informed decision about your potential freehold purchase.
Strategic support
We鈥檒l help you to negotiate a sensible price for your share, taking all factors into consideration.
Working together
We鈥檒l collaborate closely with your solicitor throughout the process to ensure a smooth transaction.
Frequently asked questions
What are the requirements for leaseholders to buy the freehold of their building?
- At least 50% of flats in the building must take part. If there are only two flats in the building, both must participate.
- A minimum of two-thirds of the flats must have a qualifying lease 鈥� a lease initially granted for a minimum of 21 years.
- A leaseholder can鈥檛 own more than two flats in a single building, either jointly or solely in their name. If this applies, these flats will be discounted from the two-thirds that need a qualifying lease.
How does a building qualify for leaseholders to buy the freehold?
- No more than 25% of the internal floor area of the building, excluding common areas, can be for non-residential use, such as shops, offices, or garages.
- The building must have a vertical division so no part of the building should extend over or under another building. If this is the case, both buildings can join together to collectively enfranchise as a single building.
What is the collective enfranchisement process?
- Step 1: Instruct a valuer to fully inspect the building and supply a valuation report. The report will give you an idea of the price payable for the entire freehold and a lower figure for serving the Section 13 notice on the freeholder. It鈥檚 important the valuation is carried out in accordance with Schedule 6 of the Leasehold Reform, Housing and Urban Development Act 1993.
- Step 2: Once you have the valuation report, you can instruct a solicitor to serve the Section 13 notice. Serving the notice triggers the official collective enfranchisement process. After that the freeholder has two months to reply with a counter-notice.
- Step 3: When you have the counter-notice, you have six months to negotiate and agree on a final price.
- If a price is agreed upon, an application to the tribunal needs to be made via your solicitor within the six-month negotiation period to keep the claim active.
- If you can鈥檛 agree on a price and no application to the tribunal is made, the claim is classed as withdrawn and you鈥檒l need to wait 12 months to start the process again.
Do new owners qualify for collective enfranchisement?
Unlike extending a lease, owners don't have to meet any requirements to buy a share of the freehold, which means new flat owners are free to take part in the purchase.
