Bringing a Leasehold Enfranchisement Claim
How leaseholders can collectively buy the freehold of their building or individually extend their lease.
Overview
Leasehold enfranchisement allows qualifying leaseholders to collectively purchase the freehold of their building (collective enfranchisement) or individually extend their lease by 90 years. This guide covers the collective enfranchisement process, which requires participation of at least 50% of flats in the building.
Who Can Use This Process
- The building contains at least two flats held by qualifying tenants
- At least two-thirds of the flats in the building are held on long leases (originally granted for more than 21 years)
- At least 50% of the qualifying tenants participate in the claim
- No more than 25% of the building is used for non-residential purposes
- Individual participants must have owned their flat for at least 2 years (for lease extensions)
Step-by-Step Process
Assess qualification
Check that the building and participating leaseholders meet the qualifying criteria. Get advice from a specialist solicitor or LEASE (the Leasehold Advisory Service).
Form a nominee purchaser
The participating leaseholders must nominate a 'nominee purchaser' — usually a company set up by the leaseholders — to acquire the freehold on their behalf.
Obtain a professional valuation
Instruct a specialist surveyor to value the freehold and calculate the enfranchisement price. This is based on a statutory formula considering the capitalised ground rent, the value of the reversion, and marriage value (for leases under 80 years).
- Use a surveyor experienced in leasehold enfranchisement valuations
- The valuation date is the date of the initial notice, so timing matters
Serve the Initial Notice (Section 13 Notice)
Serve a formal notice on the freeholder stating the leaseholders' claim. The notice must specify the proposed purchase price and the participating leaseholders. It must be served by a solicitor experienced in this area.
Freeholder's Counter-Notice
The freeholder has 2 months to serve a counter-notice accepting the claim (possibly at a different price), or challenging qualification. Most cases proceed to negotiation.
Negotiate or apply to tribunal
If the price cannot be agreed, either party can apply to the First-tier Tribunal (Property Chamber) to determine the price. The tribunal's decision is binding.
Complete the purchase
Once the price is agreed or determined, the purchase is completed like a normal property transaction. The nominee purchaser company becomes the new freeholder.
Costs
Important Warnings
Once the Initial Notice is served, the participating leaseholders are committed. If the claim is withdrawn, you must pay the freeholder's costs.
If your lease has fewer than 80 years remaining, the cost increases significantly because 'marriage value' becomes payable. Consider extending your lease first if this applies.
The freeholder can apply to the court for a 'vesting order' compelling completion if the leaseholders delay.
Useful Links
Frequently asked questions
- How long does the bringing a leasehold enfranchisement claim process take?
- The end-to-end timeline depends on which stage you're at. Common steps run on these timeframes: "1-2 weeks"; "2-4 weeks"; "2-4 weeks"; "1 day (after preparation)". Add court / counterparty response time on top — disputed matters can run months longer than the bare minimum.
- How much does it cost?
- Main outlays are: Specialist solicitor fees — £2,000-£5,000+; Surveyor valuation — £1,000-£3,000; Freeholder's reasonable costs (you must pay these) — £2,000-£10,000+; Freehold purchase price — Varies (based on statutory valuation). Court fees often qualify for Help with Fees remission if you're on a low income. Solicitor fees are extra and vary widely — many matters can be done as a litigant in person.
- What are the most common mistakes to avoid?
- Watch out for: Once the Initial Notice is served, the participating leaseholders are committed. If the claim is withdrawn, you must pay the freeholder's costs.; If your lease has fewer than 80 years remaining, the cost increases significantly because 'marriage value' becomes payable. Consider extending your lease first if this applies.; The freeholder can apply to the court for a 'vesting order' compelling completion if the leaseholders delay.. If you're unsure on any of these, get advice from a regulated solicitor or a free service like Citizens Advice before acting.
- Where can I find the official forms and guidance?
- The official sources are: LEASE — Leasehold Advisory Service; First-tier Tribunal (Property Chamber). Always use the forms / guidance from the issuing authority's own site — third-party copies can be out of date.
- Can I do this myself without a solicitor?
- Yes — many people complete this kind of matter as a litigant in person. The site walks through each step in plain English. A solicitor is recommended if: large sums are at stake, the other side has legal representation, the matter involves criminal liability, children, immigration, or you're unsure on any procedural deadline. Free advice is available from Citizens Advice, Law Centres, and (for some matters) LawWorks pro bono clinics.