Buying your Freehold
Buying the freehold of a leasehold property can give you greater control, long-term security and clarity over costs. Whether you own a leasehold flat or leasehold house, there are legal routes available to help you secure the freehold. As members of the Association of Leasehold Enfranchisement Practitioners and The Property Institute, we have recognised experience and practical knowledge to support you through the process with confidence.
Collective enfranchisement allows flat leaseholders to buy the freehold together
Leaseholders can join forces to purchase the freehold of their building. This statutory right gives you greater control over management, costs, and long-term decisions affecting your property.
The building must meet specific legal criteria to qualify
The building must be self-contained, or part of a self-contained building. No more than 25% of the building is non-residential. At least two flats must be owned by qualifying tenants with leases longer than 21 years.
At least half of qualifying tenants must take part in the purchase
A minimum of 50% of qualifying leaseholders must participate in the collective purchase. Working together strengthens your position and allows the process to move forward.
A professional valuation confirms the premium payable to the freeholder
You will need a specialist enfranchisement valuation before serving notice. This confirms the premium payable and ensures the statutory notice includes an accurate figure.
Leaseholders have the right of first refusal if the landlord plans to sell
If the landlord decides to sell the freehold, qualifying leaseholders must be given the opportunity to buy first under Section 5 of the Landlord and Tenant Act 1987.
Qualifying tenants must respond to the Section 5 notice within two months
More than 50% of qualifying tenants must accept the Section 5 offer together within two months of the notice being served.
The price in a Section 5 offer is set by the landlord
You accept the price and terms stated in the Section 5 notice. The legislation does not allow negotiation once the offer is made.
Leaseholders of houses can buy the freehold through agreement with the landlord
Houses are treated differently to flats. You can negotiate directly with the landlord to agree terms for the freehold purchase. This approach can be more flexible where both parties are willing to engage.
The law provides a statutory route where agreement cannot be reached
If terms cannot be agreed, you can apply to purchase the freehold of your leasehold house under the Leasehold Reform Act 1967. The legislation sets out the process and valuation approach.
Questions we’re often asked
No. You have join with the other flat owners to purchase the freehold of the whole building jointly.
No. Your individual flat will still have a separate leasehold title, and if you have a mortgage your lender’s charge will be registered on your leasehold title.
Because your flat is still held under a separate leasehold title, and the lease will continue to reduce in length if you don’t extend the lease.
You can apply to the court to buy your freehold.
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