Freehold Purchase
Buying the freehold of your leasehold property gives you more control over how it’s owned and managed, while providing greater certainty for the future. Whether you own a leasehold flat or house, we’ll help you understand the legal routes available and what they mean for you. We'll guide you through the process with clear, practical advice. As members of the Association of Leasehold Enfranchisement Practitioners (ALEP) and The Property Institute (TPI), you can feel confident you’re in experienced hands.
Collective enfranchisement: Buy the freehold of your building together
Collective enfranchisement gives qualifying leaseholders the right to join together, and buy their building’s freehold. It can give you greater control over how your building is managed, future costs, and important decisions about your property.
Does your building qualify for collective enfranchisement?
Your building must meet certain legal criteria. It must be self contained, or part of a self contained building, with no more than 25% used for non residential purposes. At least two flats must also be owned by qualifying tenants with leases longer than 21 years.
How many leaseholders need to take part?
At least 50% of qualifying leaseholders must take part in the collective freehold purchase. We’ll help you understand who qualifies and guide you through the legal process.
How much does it cost to buy the freehold?
A specialist enfranchisement valuation will establish the premium payable to the freeholder. You’ll need this before serving the statutory notice, so the notice includes an accurate figure.
What is the right of first refusal for leaseholders?
If your landlord plans to sell the freehold, qualifying leaseholders have a right of first refusal under Section 5 of the Landlord and Tenant Act 1987. This gives you the opportunity to buy before the freehold is sold elsewhere.
What happens when you receive a Section 5 notice?
More than 50% of qualifying tenants must accept the Section 5 offer together. You’ll have two months from the notice being served to respond.
How is the price of a Section 5 offer decided?
The landlord sets out the price and terms in the Section 5 notice. If you choose to proceed, you accept the terms stated in the notice.
Buying the freehold of a leasehold house
Buying the freehold of a leasehold house follows a different process. You can negotiate directly with your landlord to agree the terms of the purchase, giving both sides more flexibility where an agreement can be reached.
What if you can’t agree a freehold purchase with your landlord?
If you can’t agree terms with your landlord, the Leasehold Reform Act 1967 provides a statutory route to buy the freehold of a qualifying leasehold house.
Questions we’re often asked
No, you’ll need to join together with the other flat owners to buy the freehold of the entire building.
No, your flat will still have its own leasehold title. If you have a mortgage, your lender’s charge will remain registered against that leasehold title.
Yes. Even if you jointly own the freehold, your flat will remain leasehold. The length of your lease will continue to decrease unless you extend it.
Yes, you can apply to the court to purchase the freehold if your landlord is missing.
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