Collective enfranchisement

• At least 50% of flats in the building must take part. If there are only two flats in the building, both must participate.
• A minimum of two-thirds of the flats must have a qualifying lease — a lease initially granted for a minimum of 21 years.
• A leaseholder can’t own more than two flats in a single building, either jointly or solely in their name. If this applies, these flats will be discounted from the two-thirds that need a qualifying lease.

• No more than 25% of the internal floor area of the building, excluding common areas, can be for non-residential use, such as shops, offices, or garages.
• The building must have a vertical division so no part of the building should extend over or under another building. If this is the case, both buildings can join together to collectively enfranchise as a single building.

• Step 1: Instruct a valuer to fully inspect the building and supply a valuation report. The report will give you an idea of the price payable for the entire freehold and a lower figure for serving the Section 13 notice on the freeholder. It’s important the valuation is carried out in accordance with Schedule 6 of the Leasehold Reform, Housing and Urban Development Act 1993.
• Step 2: Once you have the valuation report, you can instruct a solicitor to serve the Section 13 notice. Serving the notice triggers the official collective enfranchisement process. After that the freeholder has two months to reply with a counter-notice.
• Step 3: When you have the counter-notice, you have six months to negotiate and agree on a final price.
  • If a price is agreed upon, an application to the tribunal needs to be made via your solicitor within the six-month negotiation period to keep the claim active.
  • If you can’t agree on a price and no application to the tribunal is made, the claim is classed as withdrawn and you’ll need to wait 12 months to start the process again.

Unlike extending a lease, owners don't have to meet any requirements to buy a share of the freehold, which means new flat owners are free to take part in the purchase.