Does my building qualify for collective enfranchisement?
The building must be a self-contained building or part of one, containing at least two flats held by qualifying tenants on long leases, and at least two-thirds of all the flats in it must be held by qualifying tenants (Leasehold Reform, Housing and Urban Development Act 1993 section 3(1), checked 19 September 2026). The participants must hold at least half of the flats in the building (section 13(2)(b)). In a building of only two flats, both must be held by qualifying tenants before the building qualifies at all, although only one of the two leaseholders needs to join the claim. There is no right at all where the building is a conversion of four units or fewer and the freeholder has lived there as their only or principal home for the last twelve months (sections 4(4) and 10). Buildings where the non-residential part exceeds the statutory proportion of the floor area are excluded; the 2024 Act raises that limit from a quarter to a half (not yet in force as at 19 September 2026; no commencement date announced). Certain buildings, including some with a resident landlord and those within cathedral precincts or owned by the National Trust, are excluded.
The two-year ownership requirement never applied to collective claims, and the 2024 Act removes it for houses (section 27 of the Leasehold and Freehold Reform Act 2024, in force 31 January 2025, checked 19 September 2026). Non-participating flats do not prevent a claim; the freeholder can require a leaseback of them, so it keeps the reversion on those flats while the participants own the building. We measure the building against every test before anyone pays for a valuation.
| Test | Requirement | What we check |
|---|---|---|
| Building | Self-contained building or part, with two or more flats | The register, the plan and the structure |
| Qualifying tenants | At least two-thirds of the flats on long leases | Every lease term and any excluded leases |
| Participation | Qualifying tenants of at least half the flats must give the initial notice, under section 13(2)(b)(ii) of the 1993 Act. In a building of exactly two flats, both flats must be held by qualifying tenants, because section 3(1) requires qualifying tenants to hold at least two thirds of the flats, but one of them can give the notice. Checked 26 September 2026 | Who has confirmed and signed the participation agreement |
| Non-residential space | Below the statutory proportion of floor area, raised by the 2024 Act (not yet in force as at 19 September 2026; no commencement date announced) | Measured floor areas of shops, offices and common parts |
| Exclusions | Resident landlord, National Trust, cathedral precincts and others | The freehold title and the freeholder's status |
| Ownership period | None for a collective claim; abolished for houses (section 27 of the Leasehold and Freehold Reform Act 2024, in force 31 January 2025, checked 19 September 2026) | The registered proprietor of each flat |
What has the Leasehold and Freehold Reform Act 2024 changed for freehold purchases?
The Act rewrites the enfranchisement rules in the leaseholder's favour, commencing in stages by regulations, so what applies depends on which sections are in force on the day your notice is served. Already in force: the two-year ownership requirement for houses has been abolished (section 27 of the Leasehold and Freehold Reform Act 2024, in force 31 January 2025, checked 19 September 2026). Not yet in force (no commencement regulations for these sections as at 26 September 2026, checked 26 September 2026): the non-residential limit rises to half the floor area; marriage value and hope value come out of the premium; the capitalisation and deferment rates are prescribed; leaseholders stop paying the freeholder's non-litigation costs in most cases; and participants gain a right to require the freeholder to take a leaseback of non-participating flats, reducing the premium.
The practical effect, once fully in force, is a lower premium for most buildings, particularly where leases are short, and a cheaper process. Whether to serve now or wait depends on your building, the lease lengths and the ground rents, and we set both figures out in writing rather than guessing. The Act's commencement regulations on legislation.gov.uk are the record of what is in force on any given date.
Is buying the freehold worth it compared with a lease extension?
For a house, usually: the premium for a long lease is modest, ground rent ends, and the house becomes a freehold house on the register, which is what buyers and lenders expect. For a block, it depends on whether enough neighbours will join in. Where they will, buying the freehold usually costs each participant little more than a lease extension would, and gives control of the building as well as 999-year leases for little more than the legal cost. Where they will not, a lease extension is the route open to you alone.
A freehold purchase is a land transaction, so Stamp Duty Land Tax in England, or Land Transaction Tax in Wales collected by the Welsh Revenue Authority, applies to the premium paid by the nominee company, with relief available on a collective purchase under section 74 of the Finance Act 2003, and under Schedule 14 paragraph 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 in Wales. It is an apportionment rather than an exemption: the price is divided by the number of qualifying flats, the tax is worked out on that fraction and then multiplied back up. Only flats whose qualifying tenants are participating count in the divisor, under section 74(4). Ask us to check whether the higher rate for certain high value acquisitions in Schedule 4A to the Finance Act 2003 could apply before you budget on the apportioned figure, because where it does it falls on the whole premium. Checked 20 September 2026.