A Step-by-Step Guide to Collective Enfranchisement

Taking the first steps towards buying the freehold interest to your building (which is referred to as leasehold or collective enfranchisement) can be quite daunting as the process appears quite complex. This article looks at the process in more detail and what benefits it may bring to you. We have devised a checklist which can help you ensure that you have followed the right processes.

1) You need to make sure you are eligible to purchase the freehold. If you live in a building with only two flats, then you both need to be on board. If you live in a multi-occupancy building, then 50% of tenants need to be on board. Every tenant should have been granted a lease for at least 21 years in the first place.

2) You need to decide how you are going to approach the current landlord or freeholder to assert your right to collective enfranchisement. This will generally involve appointing a nominee purchaser to act on your behalf, most commonly done through the formation of a private limited company (Plc) created by the tenants involved in the purchase.

3) Do you have all the information needed for your Initial Notice? This is the first thing you have to serve your current freeholder with and you need to make sure it's robust to minimise the chance of rejection.

4) Do you have enough funds to cover the costs of the freehold and all the associated costs involved in leasehold enfranchisement? It is difficult to provide estimations on what freehold's cost as it varies a lot in different cases. A specialist enfranchisement solicitor, however will give you a good idea of the legal costs or you will need a specialist surveyor to value the freehold itself. You should also be aware that you're liable for the landlord's costs of the purchase.

5) Do you know what to do if the landlord rejects your claim with their counter-notice? They must normally get back to you within a couple of months to either say yes to the sale or reject it. If they reject it, you then have two months to appeal the decision in a county court. If your claim cannot be resolved in a county court then the judge may think it best to refer your case to a Leasehold Valuation Tribunal who can then make a decision re the collective enfranchisement.

6) Do you have the skills and time needed to manage the freehold and the building once you've bought it? Once you purchase the freehold, the management of the building passes normally to the Plc formed by the tenants, so you need to be sure that this is something you could handle.

This is by no means an exhaustive exploration of leasehold enfranchise and, but hopefully it will give you an idea of the key issues surrounding it and act as a useful guide when you're looking to make an application. The most important thing, however, to remember is that collective enfranchisement is complex and most solicitors and surveyors have little experience of it. Due to this it is crucial that you have a specialist solicitor and valuer on side to offer you advise.


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Tim Bishop is senior partner at Bonallack & Bishop, a firm of collective enfranchisement solicitors specialised in advising on leasehold enfranchisement. Tim is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. He has expanded the firm by 1000% in 12 years and has plans for its continued development.