Collective enfranchisement is a statutory right under the Leasehold Reform, Housing and Urban Development Act 1993. It allows qualifying leaseholders, acting together, to acquire the freehold of their building from the landlord (freeholder).
In summary:
- At least 50% of qualifying leaseholders must participate.
- A formal legal notice is served on the freeholder proposing a purchase price (the premium).
- The freeholder cannot refuse the sale but may dispute the proposed premium.
- If the price is disputed, it is determined by an independent tribunal.
- On completion, the participating leaseholders acquire the freehold of the building, including its structure and common parts.
What this can provide
Where collective enfranchisement is completed, participating leaseholders typically obtain:
- a share in the freehold
- collective ownership of the building’s common parts and land
- the ability to grant themselves long leases (commonly 999 years)
- control over future lease extensions
- removal of ongoing ground rent obligations
- greater control over alterations and long-term management decisions
The effect on property value will vary and depends on individual circumstances.
Costs and professional advice
The price payable for the freehold (the premium) is determined in accordance with statutory valuation principles and may take into account:
- the level of ground rent
- the length of existing leases
- the value of the building
- other factors prescribed by legislation
In addition to the premium, participants will normally incur legal and professional fees.
Leaseholders considering collective enfranchisement should obtain independent legal and valuation advice.
Important note
This page provides general information only.
It does not indicate that collective enfranchisement is proposed, underway, or being organised in relation to Centenary Mill Court.