Collective enfranchisement
Buying the freehold is a transaction with statutory deadlines.
The group needs a qualifying building, enough participating leaseholders, a nominee purchaser, valuation advice, a valid notice and a plan for owning the freehold after completion.
Check the current route
Do not use the 2024 Act headline as the eligibility test.
Identify the self-contained building or part
Use the titles, plans, structure and services to define the property that would be acquired.
Count flats and qualifying leaseholders
The current route requires at least two flats, at least two-thirds held by qualifying leaseholders and participation from at least half the flats. Two-flat buildings require both.
Measure residential and commercial floor space
Current LEASE guidance retains the 75% residential test for collective enfranchisement. The planned reduction to 50% is not yet the live rule.
Check resident-landlord and other exclusions
Converted buildings with four or fewer flats can fall within the resident-landlord exemption when its detailed ownership and occupation conditions are met.
Build the transaction
Prepare the group before serving the notice.
Record participants, funding and decisions
Agree how valuation, advisers, deposits, premium, non-participating interests and future ownership will be handled.
Choose the nominee purchaser
Set up or identify the person or company that will acquire the freehold and record its governance before it takes title.
Get valuation advice on the current basis
The premium can include the landlord's existing interests and other value in the property. Use a specialist valuer before inserting a figure in the notice.
Treat the initial notice as a legal instrument
The property, participants, interests, price and date machinery need to be correct. A defective notice or missed deadline can have material consequences.
Track the counter-notice and unresolved terms
Keep the valuation positions, evidence, admissions and statutory dates visible. Tribunal and court routes depend on the point in issue.
Prepare for ownership, not only acquisition
Insurance, service-charge money, contracts, arrears, consents, company records and the first board decisions need an agreed handover.
2024 Act status
Some reform is live. The new valuation system is not.
The two-year ownership rule was removed for individual claims
That change does not remove the collective-building and participation tests on this page.
The 990-year term and marriage-value changes await commencement
Government guidance published in July 2026 says flaws need correcting through further primary legislation before the new enfranchisement process can start.
Valuation rates are under consultation
The government is consulting on the deferment and capitalisation rates needed for the future standard valuation method.
Compare acting now with waiting
Use current valuation advice, lease terms, deadlines, group readiness and the uncertainty of future commencement. Do not promise that waiting will be cheaper.
Sources for this page
Open the law and guidance yourself.
Current qualifying-leaseholder, participation, floor-space, self-contained-building and exemption guidance.
↗Independent guidanceIs collective enfranchisement right for you?LEASE guidance comparing collective enfranchisement with other management and acquisition routes.
↗Current reform statusEnfranchisement valuation ratesThe July 2026 government consultation and explicit statement that the new process is not yet commenced.
↗Tribunal routeEnfranchisement guidance T542Current First-tier Tribunal guidance on applications, evidence, directions, hearing and fees.
↗Links and current-law position checked 18 August 2026. Apply the governing documents, building facts and current law to the case in front of you.
