This content applies to England only.

Housing laws vary between England and Scotland. Get advice relating to Scotland

If you own a leasehold flat you may have the right to buy a share of the freehold of your building. You have to get together with other leaseholders to do this (collective enfranchisement). There are rules about which leaseholders can buy the freehold and how the process works.

 If your lease covers the whole house (whether it has been converted into flats or not) the rules are different.

What are the benefits of buying the freehold?

Being a freeholder is more secure than being a leaseholder. Buying the freehold may make it easier to sell your home and will probably increase its value. This is because:

• freeholders have more control over the management of their homes
• most freeholders don't have to pay ground rent
• freeholders can normally only be evicted if they don't pay the mortgage or other secured loans.

Am I eligible?

Not all flat owners have the right to buy a share of the freehold. There are rules about who qualifies and which properties are eligible. Your lease must have originally been granted for at least 21 years or contain a special clause which says that it can be renewed indefinitely. It is no longer necessary to have lived in the property for a specific amount of time. However, even if this is the case, you may not eligible if:

• you have a business lease
• you have a lease on more than two flats in the building
• the freeholder is a charitable housing trust, the National Trust, the Crown or the Church of England.

There are a few other exclusions. For example, if your flat is in a house that was converted by the freeholder and s/he (or an adult member of her/his immediate family) has lived in one of the flats for at least the last 12 months, the leaseholders probably can't buy the freehold.

Does my building qualify?

There are also rules about the types of buildings that can be bought. Your building will probably qualify if:

• it is self-contained and contains two or more flats, and
• at least two-thirds of the flats are owned by leaseholders
• no more than 25 per cent of the building is used for business purposes.

In most cases, the leaseholders who buy the freehold must own at least half of the total number of flats in the building. If there are enough leaseholders in the building but some of them don't want to take part, they don't have to.

How does the process work?

Collective enfranchisement can be a very complicated process. The basic steps are explained below. This is only an introduction to the procedure you will have to follow and you will need a solicitor to do the legal work. More information is available from the Leasehold Advisory Service. You may also be able to get help from a Shelter advice centre or Citizens Advice in your area. Use the Advice Services Directory to find one.

Step 1 - find out how the building is owned and managed

This will help you work out whether you can buy the freehold and who will be involved in the process. You should be able to get all the details from whoever collects your ground rent. Later on, you will need to deal with all the other leaseholders in the building, the freeholder and the managing agent, if there is one.

Step 2 - contact the other leaseholders

Inform all the other leaseholders in the building that you are interested in buying the freehold and invite all of them to take part. You can say which leaseholders have already agreed to buy a share and give an estimate of the costs involved.

Step 3 - set up a company to buy the freehold

You need to have a formal legal agreement with the other leaseholders. This is normally done by setting up a company to buy the freehold on behalf of the group. You also need to agree how you will manage and maintain the building after the sale and how you will share the costs involved. You may also need to hire a surveyor to value the freehold to get an idea of how much it is likely to cost.

Step 4 - contact the freeholder

You have to give written notice to the freeholder, saying that you want to buy the freehold. You have to say how much you propose to pay and give details of all the leases involved. You also have to give a deadline for the freeholder's response, which must be at least two months from the date of your notice. Once you give this written notice, the company representing the leaseholders becomes responsible for all the freeholder's legal expenses. You will have to pay them even if the sale falls through.

Step 5 - the freeholder's response

The freeholder's reply should say whether s/he agrees that you have the right to buy the freehold. S/he can only refuse to sell it in certain circumstances. However, the process usually involves a lot of negotiation. The freeholder may not agree with the price you have offered and may insist that you agree to other conditions for the sale. For example, if your building is in an estate, the freeholder may only allow the sale if you agree to use the same maintenance scheme as the rest of the estate. If you can't agree the conditions of the sale (or the price), get advice. You may be able to take the freeholder to a leasehold valuation tribunal.

Step 6 - complete the sale

Once the price and other conditions of the sale are agreed, neither side can pull out. You have to complete the sale within two months.

After the sale, the company representing the group owns the freehold and is responsible for managing and insuring the building. It will be able to collect service charges for repairs and improvements and can grant new leases, often at a peppercorn rent.

If you decide not to buy (for example, because you can't afford it) you have to tell the freeholder within one month of the price being set. If you pull out, you can't reapply for three years and will still have to pay all the legal costs. You may also have to pay compensation if the freeholder loses money because of your claim.

How much will it cost?

Unfortunately, there is no easy way to work out how much you might have to pay for the freehold. You will need to get a valuation to get an idea. It is almost impossible to work out a fixed price, so most valuers will give you a high and low price. The final price should be somewhere in between, but you will have to negotiate. It may be worth getting a valuation before you give written notice to the freeholder if you are not sure whether you will be able to afford it.

If you think the price the freeholder is asking is too high, a leasehold valuation tribunal can decide whether the price is fair.

You will also have to pay all the legal costs involved - for both yourself and the freeholder. This will include solicitors' and surveyors' fees.

Buying the freehold is only an option if you can afford it. It is usually more expensive than extending your lease and can be more complicated. Depending on your circumstances, extending your lease may be a better option, so you should get advice before making a decision.

Send us feedback

Get advice by email