What is collective enfranchisement?
Collective enfranchisement is a statutory right for qualifying flat leaseholders to buy their building's freehold together. The rules are in Part I, Chapter I of the 1993 Act (opens in a new tab). There are eligibility tests, a formal notice process and a statutory valuation method.
The purchase is made through a nominee purchaser, often a company owned by the participants. Each flat remains leasehold: a share of the freehold does not automatically replace its lease. See GOV.UK's buying the freehold guide (opens in a new tab) and LEASE's introduction (opens in a new tab).
If your main aim is management control, compare Right to Manage, which does not require buying the freehold.
General information, checked on 8 October 2026, rather than advice on a particular purchase. Ask a specialist solicitor and valuer to check eligibility, funding, notices and tax before you commit.
Who qualifies?
The building must contain at least two flats held by qualifying tenants, and qualifying tenants must hold at least two-thirds of all flats. It must be a self-contained building or a qualifying self-contained part. See section 3 (opens in a new tab).
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At least half of all flats must participate
Participating qualifying tenants must represent at least half of all flats in the building. This is not half of just the qualifying flats. In England, where there are only two qualifying tenants, both must participate. That can apply in a larger building, for example if one person owns two flats. In Wales, check the rule with LEASE. See section 13 (opens in a new tab).
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Long residential leases
A qualifying tenant normally holds a lease originally granted for more than 21 years. A person owning three or more flats in the building is not a qualifying tenant of those flats. Whether shared owners below 100% qualify is uncertain. LEASE says they generally need to have staircased to 100%, but case law on the section 7(1)(a) test for leases over 21 years points the other way. Check your own eligibility with an adviser. Certain charitable housing tenancies are excluded. See LEASE's eligibility guide (opens in a new tab).
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The non-residential limit is still 25%
No more than 25% of the internal floor area may be non-residential, excluding common parts. The 2024 Act's increase to 50% is not yet in force for collective enfranchisement. The government confirmed in its June 2026 parliamentary answer (opens in a new tab) that implementation requires further steps. Do not apply the 50% RTM limit to a freehold purchase.
Check exemptions before spending money
The resident-landlord exemption can apply to a conversion with no more than four flats where the landlord owned before conversion and meets the residence conditions. National Trust property, cathedral precincts and railway-related property also have exclusions. These are not the same tests as RTM; have your solicitor check section 4 (opens in a new tab) and the full eligibility guidance (opens in a new tab).
What ownership changes
Owning the freehold gives participants a collective say in management. You can arrange longer leases and changes to ground rent, but these need proper legal documentation and agreement. The purchase alone does not extend a lease or cancel rent. Legal, registration and any tax costs still need considering. See LEASE's benefits and responsibilities guide (opens in a new tab).
Lease obligations, building safety and maintenance duties remain. Agree how decisions, budgets, records and disputes will be handled. A managing agent may help with the work; ownership does not guarantee lower bills or a faster sale.
Non-participants remain leaseholders. They do not automatically receive a share of the freehold or a right to join the purchase later. Agree any later buy-in arrangements at the outset with your solicitor.
What to budget for
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The purchase premium
Get a specialist valuation. Ground rents, remaining lease terms, the landlord's reversion and other property interests affect the statutory price. Marriage value can apply to participating flats with 80 years or fewer remaining. See Schedule 6 (opens in a new tab) and LEASE's valuation guide (opens in a new tab).
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Advice, company and registration costs
Request written legal and valuation quotes, including VAT and disbursements. Agree each participant's contribution, the contingency fund and what happens if someone withdraws. There is no reliable universal fee for a building of unspecified size and complexity.
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The landlord's reasonable costs
Current law covers specified reasonable costs of checking the claim, valuation and conveyancing. It does not automatically make you liable for every negotiation or tribunal bill. See section 33 (opens in a new tab). Obtain advice on costs exposure if the claim fails or is withdrawn. A withdrawn claim, or one treated as withdrawn, can also bar a fresh notice covering overlapping premises for twelve months (section 13(9)(a)).
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Tax
Ask your conveyancer to calculate Stamp Duty Land Tax for an English purchase, or Land Transaction Tax for a Welsh purchase, including any available relief. Do not assume ordinary home-purchase thresholds settle the bill: HMRC has specific collective-rights relief rules (opens in a new tab). For Wales, use Welsh Revenue Authority guidance (opens in a new tab).
The purchase process
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Check eligibility and organise funding
Confirm the participating flats, appoint a solicitor and valuer, choose the nominee purchaser and agree a participation agreement. Set out contributions, decisions and withdrawal arrangements before serving notice.
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Serve the Section 13 notice
The formal notice identifies the property, participants, nominee purchaser and proposed price. Its counter-notice deadline must allow the landlord at least two months. See section 13 (opens in a new tab).
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Negotiate or resolve the dispute
Where the right is accepted but terms are disputed, either party can apply to the tribunal after two months and within six months of the counter-notice. England uses the First-tier Tribunal (Property Chamber); Wales uses the Leasehold Valuation Tribunal. Missing counter-notices and challenges to eligibility follow different court procedures. Have your solicitor track the correct route and deadline. See LEASE's response guide (opens in a new tab) and the Welsh tribunal guidance (opens in a new tab).
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Complete the purchase and arrange management
Your solicitor handles the transfer and registration. Normally a binding contract must follow within two months of final agreement or of the tribunal decision becoming final. You then have a further two months to apply to the court if needed. The tribunal can set a different first period. Missing the court deadline means the claim is treated as withdrawn (sections 24 and 29). Deal separately with any agreed lease extensions or variations. Plan the handover of management, insurance and records. Ask for a case-specific timetable; the statutory notice periods are not a guaranteed completion date.
Upcoming changes: October 2026
The 2024 Act provides for wider eligibility and a new valuation and process-cost regime. The main enfranchisement reforms remain pending. The government's 7 September 2026 update (opens in a new tab) says regulations and corrections through a further Bill are needed. There is no confirmed commencement date to use when budgeting a purchase today.
The valuation rates consultation (opens in a new tab) opened on 15 July 2026. As checked on 21 October 2026, its published closing time is 23:59 on 21 October 2026, following the September extension. The separate process-cost consultation (opens in a new tab) closed at 23:59 on 23 September 2026. These proposals do not change current costs or valuation law. Discuss whether to proceed or wait with your advisers; proposed savings are not a quote for your claim.
Next steps and sources
Start with the leases, title documents and a list of interested owners. Obtain an eligibility opinion and valuation before promising contributions. For community coordination, explore discussions on Residents Circle.