If you own a flat you can buy the freehold of your building with the other leaseholders. You can either do this by informal negotiation with the freeholder, potentially saving you time and money; or if you meet certain criteria, you could take a formal legal route in a process called collective enfranchisement, which would offer you more protection.
It is worth starting the process informally and switching to the formal one if negotiations fail.
Informal route
Under this route, you and other leaseholders ask the freeholder whether they are interested in selling the freehold. There is no obligation on the freeholder to respond or to agree to sell.
If the freeholder agrees then you can negotiate.
But if you cannot agree on price and terms, and you meet the criteria, you can still use the formal route to try to buy the freehold.
Formal route
If you and your building meet certain criteria, you have a legal right to join up with your fellow leaseholders and buy the freehold of the building.
The laws and exceptions that are relevant to you will depend on your circumstances, but generally to qualify:
- you must not own more than two flats in the building
- you must have a ‘long lease’ – that is, one that was originally at least 21 years when first granted
- your building must have at least two flats, and at least two-thirds of the flats must be owned by qualifying leaseholders
- at least half of the flats must be owned by participating qualifying leaseholders
Under this route, you, the other leaseholders and the freeholder need to follow a procedure and timescales set out by law. It can be complicated, and we recommend you appoint a valuer and a solicitor to help you.
In brief, you serve your freeholder with a formal notice, including your terms and price, and they have 2 months to reply in a ‘counter-notice’. They may:
- agree to your right to buy the freehold and your terms
- agree to your right to buy but with different terms – which will give you 2 more months to come to an agreement, and then 4 further months in which either of you may also apply to the tribunal to rule on the terms
- not agree that you have a right to buy – which will mean you will have to apply to the county court for a decision
- not reply to your notice – which means you have to apply to the county court for a decision
Get help
Buying the freehold can be a difficult process. We recommend you get professional help from a solicitor and surveyor with experience in this area.
Template letter for the informal route
More information you might find useful:
- Collective Enfranchisement – Getting Started
- More Frequently Asked Questions on Buying the Freehold of Flats
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