Collective Enfranchisement

8th Jul 2021

collective enfranchisement

If you own a leasehold flat, you don’t actually own the building or the common parts. These areas are owned by the freeholder or landlord to whom you will pay service charge, ground rent, insurance, and other charges to which to have little control over. In this short guide we look at how you can break free from this situation by buying the freehold of your building, a term called collective enfranchisement.

Leaseholders of flats have a joint right, with other flat-owners in the block, to buy the freehold of their building. This is known as a right of “collective enfranchisement” and it means that the leaseholders become their own freeholder.

Buying the freehold isn’t something you can do on your own – you have to get your neighbours involved too. The law allows at least half of the leaseholders to come together to buy the freehold of the block from the freeholder/landlord. At the end of this process the flat owners would:


Am I eligible to buy the freehold?

Generally, the eligibility requirements for a group of leaseholders to buy the freehold (collective enfranchisement)are as follows:


Should I buy the freehold?

Buying the freehold is worth looking into if:


Buying the freehold (collective enfranchisement) to your building can bring a whole host of benefits to you and your neighbours, but managing a building is a complex task, as there are many legal matters and regulations that the building must comply with. Although you’ve got control over how much service charge you pay, the insurance and the benefit of it adding value to your home, with great power comes great responsibility. The new freeholders need to set up a freehold company, do the accounts, arrange insurance, and keep the building well maintained, so it does come with a lot of responsibility!

Here at Blocsphere we work with many freehold companies, who have approached us to help take some of the responsibility off them. The role of a Managing Agent requires knowledge of the landlord and tenant law, building construction, health and safety regulations, accounting and much more! If you don’t have knowledge in these areas, without a Managing Agent it can be a very difficult and complex task managing the building, specially if it is a large block. Blocsphere are able to tailor our services to meet individual resident needs and facilitating a customer-centric ethos and is on hand to guide you through the “legal minefield” that is better known as property management.

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