Leasehold and shared ownership
Freehold acquisition or enfranchisement
Buying the freehold of your house, or joining other flat owners to buy the freehold of your building through collective enfranchisement.
This work depends on the details, so our team prepares a quote for you, usually within one working day.
Flat owners should agree who is taking part and how the costs will be shared before anyone serves notice on the landlord.
Owning the freehold puts you in control: there is no outside landlord, and you or your company decide how the building is run and insured. Leaseholders of houses can often buy the freehold of their own home, while flat owners can join together to buy the freehold of the whole building, a process called collective enfranchisement.
This service covers both. For a house, the work is similar to a purchase with extra statutory steps. For a block of flats it is a group project: the participating flat owners usually form a company to buy and hold the freehold, agree how to share the costs and then serve formal notice on the landlord.
Freehold purchases depend heavily on the building, the number of participants and the landlord's response, so they get a tailored quote prepared by our team, usually within one working day. A specialist valuer is needed to advise on the price.
What is involved
For a collective claim by flat owners, the work usually includes:
- Checking eligibility: confirming the building contains at least two flats, at least two thirds of the flats are held by qualifying leaseholders, the participants hold at least half of all the flats, and no more than 25% of the internal floor space is non-residential (the Leasehold and Freehold Reform Act 2024 raises this to 50% once that part of the Act is brought into force; it already applies to the right to manage).
- Organising the participants: helping the participating flat owners agree a participation agreement covering who pays what, how decisions are made and what happens if someone drops out or sells.
- Setting up the buyer: the freehold is bought by a nominee purchaser, usually a company owned by the participants.
- Valuation: a specialist surveyor advises on the price, including any marriage value and the value of the flats that are not taking part.
- Initial notice: serving the formal notice on the landlord, setting out the proposed price and what is to be acquired.
- Counter-notice and negotiation: agreeing the price and terms with the landlord, or applying to the First-tier Tribunal if they cannot be agreed.
- Completion: transferring the freehold to the company, dealing with any mortgages on it and registering it at HM Land Registry.
For a house, your conveyancer checks your right to buy, serves notice on the landlord, negotiates the price with your valuer and completes the transfer of the freehold.
What the legal fee covers
- Checking the building and the leases for eligibility
- Explaining the process and each participant's obligations
- Preparing a participation agreement between the flat owners
- Setting up or advising on the nominee purchaser company
- Preparing and serving the formal notices
- Negotiating the transfer terms with the landlord's solicitors
- Completing the freehold purchase and registering it
- Advising on new long leases for participants after completion
Costs you may see on top
- The price paid to the landlord, agreed or set by the tribunal
- Specialist valuation fees for the whole building
- The landlord's reasonable legal and valuation costs, usually payable by the participants
- Company formation and filing costs for the nominee purchaser
- HM Land Registry fees for registering the freehold
- Tribunal fees and representation if terms cannot be agreed
- Stamp Duty Land Tax on the price, where it is large enough to be taxable
- The cost of lease extensions for participants after the freehold is bought
What to have ready
- Copies of the leases for the participating flats
- A list of all the flats in the building, with owners and contact details
- Details of any commercial units, such as shops on the ground floor
- The landlord's name and address and the managing agent's details
- Details of each participant's mortgage lender
- Any valuation or survey advice already obtained
- Photo identification and proof of address for each participant
How long it takes
Buying the freehold commonly takes several months and often longer, because the statutory process sets periods for the landlord to respond and for negotiation before a tribunal application can be made. Organising a group of flat owners, agreeing how to share costs and collecting funds often takes time before any notice is served. If the landlord agrees the price quickly, completion can follow within weeks of agreement, while disputes that go to the tribunal extend the timetable considerably. A claim for a single house is usually simpler than a collective one.
Things to watch for
- Agree the participation agreement before the notice is served. Disputes between flat owners about costs or decisions are a common reason claims stall.
- Make sure enough flats take part, and keep track of sales. If a participant sells during the claim, their place needs to pass to the buyer and the numbers must still work.
- Budget for the landlord's costs as well as your own, and for the share of the price that relates to flats not taking part.
- The landlord may be entitled to take leases back of some parts, such as flats not taking part or commercial units, which affects the price. Your conveyancer will explain what is proposed.
- The qualifying rules and the way the price is calculated are due to change. Changes are being brought in by the Leasehold and Freehold Reform Act 2024; your conveyancer will tell you what applies on the date of your transaction.
Questions people ask
Does every flat owner have to take part?
No. Under the current rules, the qualifying leaseholders taking part must hold at least half of all the flats in the building. Those who do not take part keep their leases, and the freehold company becomes their landlord. Participants usually fund the price for the non-participating flats too, which is one reason a clear participation agreement matters.
What is a nominee purchaser?
It is the person or company that buys the freehold on behalf of the participating flat owners. In practice it is usually a company set up for the purpose, with the participants as its members. After completion, the company owns the freehold, insures the building and arranges repairs, often through a managing agent.
Is there an alternative to buying the freehold?
The right to manage lets qualifying leaseholders take over the management of their building without buying it. It does not give you ownership or end ground rent, but it involves no payment to the landlord for the freehold. The Leasehold Advisory Service sets out the qualifying criteria for buying the freehold, and your conveyancer can compare the options for your building.
Can I buy the freehold of my house on my own?
Often yes. Many leaseholders of houses have a legal right to buy the freehold, as long as they hold a long lease and the property counts as a house in law. A landlord can also agree to sell informally at any time. Your conveyancer and a valuer will check whether you qualify, what the price is likely to be and which route suits you.
Who does the work
Your matter is handled by a law firm regulated by the Solicitors Regulation Authority, the Council for Licensed Conveyancers or CILEx Regulation, or in Northern Ireland by a solicitor regulated by the Law Society of Northern Ireland. At the moment the law firms on our panel act for property in England and Wales, so for property in Northern Ireland we tell you whether a firm can act for you before we pass your details to anyone. The firm confirms who will work on your file, their experience and its terms before you instruct it. How we choose our firms.