Buying a share of the freehold for your flat
Is it right for you?
There are advantages to owning the freehold as well as other things to consider (including any alternatives to collective enfranchisement), to make sure it's the right thing for you.
Advantages
Advantages to owning the freehold include, you can:
- collectively control the building’s management – either directly or through an agent
- more easily ensure that services, repairs or maintenance are good value
- extend the leases to 999 years, increasing the value of the flats and making it easier for potential buyers to get mortgages
Things to consider
There are also responsibilities that come with owning the freehold.
These can include:
- ensuring the building meets regulatory codes (such as fire safety) and other legal requirements
- managing a building can be time consuming and complex (many choose to get an agent to do it for them)
- resolving disputes with the other leaseholders, such as late payments
Many leaseholders use the services of a professional managing agent to help with these responsibilities.
Costs
Costs include each leaseholder’s share of:
- the freehold of the building
- valuation costs
- solicitors’ costs
You do not have to pay the landlord’s costs related to negotiations or any tribunal proceedings. But you and the other leaseholders will have to pay their reasonable costs for things like:
- surveys
- valuation
- conveyancing
- a solicitor
As part of the leasehold reforms, the government is planning to abolish the requirement for leaseholders to pay these landlord costs (with some exceptions). You may want to discuss with your solicitor if it’s better to wait until this reform has been implemented.
Do you have to take part?
If other leaseholders in your building are buying the freehold, you do not have to take part. There’s also no legal requirement for them to invite every leaseholder to be involved.
But if you do not take part and the purchase goes ahead, you will not have a right to buy a share of the freehold later. You’ll remain a leaseholder and your new landlord will be the company set up and run by the other leaseholders. If you wanted to buy a share later you would need the other leaseholders to agree to this.
Alternatives to collective enfranchisement
There are alternatives to the formal collective enfranchisement process that may be more suitable to your situation.
Informal negotiation
If the landlord (freeholder) is open to the idea, informal negotiation might be the easiest way to buy the freehold.
Find out if enough of the other leaseholders in the building are interested, then organise amongst yourselves to approach the freeholder.
The landlord does not have any obligation to sell, or even to respond. But if they do agree then you and other leaseholders can try negotiating terms and a price. If you cannot agree on the terms or price, you should then look into collective enfranchisement.
Template letter
You can use our template letter to write to your landlord to ask about buying the freehold.
Right of first refusal
If, for example, your landlord wants to sell or transfer the freehold they might have to offer it to you and the other leaseholders first. This is known as the right of first refusal (RFR). You must qualify for the right and there are exceptions.
Find out more: right of first refusal
Right to manage
If your main concerns are issues with the building’s management and maintenance, you could consider the right to manage instead of collective enfranchisement.
The right to manage allows leaseholders to set up a company to take over the management of their building from the landlord without the need to buy the freehold. It's quicker than collective enfranchisement and often cheaper.
You must qualify for the right to manage and there are exceptions.
Find out more: right to manage
Acquisition orders
If your landlord ignores the building’s repair, maintenance, insurance or management, you might be able to apply for an acquisition order.
This is a court-ordered sale of the freehold to leaseholders that has more favourable terms, including:
- no marriage value payable when the lease term is 80 years or less
- leaseholders’ costs related to the application might be offset
You will need a solicitor and at least two-thirds of the qualifying tenants to participate in the application.
Landlords can and often do resist applications for acquisition orders, and going to court can be expensive, so get advice from a solicitor if you’re considering this option.
- Last updated:
- 20 December 2025
- Next review:
- 20 December 2027