Leasehold

Enfranchisement

Estimate the cost of collective freehold purchase for a block of flats.

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Introduction

Who this is for: Leaseholders considering collective enfranchisement of their building.

Why it matters: Collective enfranchisement lets qualifying leaseholders buy the freehold together, taking control of management and granting themselves long leases at peppercorn rents. At least half the flats must participate, and the cost is shared between them.

Typical scenario: Eight of twelve leaseholders in a block acting together to acquire the freehold.

Common mistakes:
  • Not securing enough participants — the 50% threshold is a hard statutory requirement.
  • Overlooking the value of development potential such as roof space, which the freeholder will price in.
  • Underestimating professional costs, since leaseholders pay both sides.

Inputs

Building

flats

flats

years

£

Freeholder Interest

£
%
%
£

Costs

£

Analysis

8 of 12 flats (67%) — qualifies (50%+ participating). The estimated premium is £237,640, and with £18,000 of professional costs the total is £255,640, or about £31,955 per participating flat against a value uplift of roughly £28,500 each.

This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.

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Sensitivity Analysis

Sensitivity

Adjust the variables below to stress-test this scenario. Results update instantly.

76
1999
£285,000
£0£570,000
5%
38

Export

Live Results

Estimated Premium

£237,640

Total Cost incl. Fees

£255,640

Cost per Participating Flat

£31,955

Qualifying Threshold

Qualifies (50%+ participating)

ESTIMATE ONLY — NOT A VALUATION. Statutory lease valuations depend on relativity and deferment rates that are genuinely contested between surveyors and have been litigated at Tribunal. Small changes in those inputs move premiums by tens of thousands. Use this for initial screening only, and instruct a specialist valuer before serving notice or agreeing any premium.
Average lease length is below 80 years, so marriage value is payable. Acting sooner reduces this element.
Non-participating leaseholders do not contribute but also gain nothing. Participants typically grant themselves 999-year leases at peppercorn rent afterwards.
Ground Rent Element£49,403
Reversion Element£83,876
Marriage Value Element£104,360
Participation66.67%
Value Uplift per Flat£28,500