Collective Enfranchisement in London and South East
What is Collective Enfranchisement Valuations
Providing Freehold Enfranchisement Valuations in London & The South East
Collective Enfranchisement gives the owners of flats in a building, or parts of a building, the right to form a collective and purchase the Freehold. Requiring at least 50% of Lessees to form the collective and that the building or property itself qualifies, Collective Enfranchisement is a complex procedure requiring correct Notice be served to the Freeholder.
At Taylor Chartered Surveyors we’re here to make that process easier. As RICS regulated Chartered Surveyors, we work alongside solicitors to value the Premium that must be paid to the Freeholder and to ensure that there are no holes through which the Freeholder could mount a strong defence against the purchase.
How Collective Enfranchisement Works
Guided by the Leasehold Reform Housing & Urban Development Act 1993, and amended by the 1996 Housing Act and the Commonhold and Leasehold Reform Act 2002, Collective Enfranchisement gives you and your fellow Leaseholders the legal right to collectively purchase the Freehold of your building.
Though the strictures are complex, there are some simple requirements that the building valuation must meet before Collective Enfranchisement is even considered. These are:
- The building must contain two or more flats.
- No more than 25% of the building can be commercial floor area.
- The Freeholder must not be a Charitable Housing Trust.
- The Tenant cannot have a business or commercial lease.
If you meet these requirements,
and to find out if you may be able to purchase the Freehold of your property as a Collective, speak to one of our specialist Chartered Surveyors today.
How We Conduct a Collective Enfranchisement Valuation
Once you have checked for eligibility, organised for Enfranchisement, and have chosen a Nominee Purchaser you will be ready to Select and Instruct your solicitors and Surveyors.
This is where we come in. Aside from providing general advice, our Collective Enfranchisement Valuation consists of:
- Providing best and worst case valuation advice in order to inform Leaseholders and Freeholders of how negotiations may pan out.
- Advising on how much should be offered to the Freeholder in the Initial Notice.
- Responding to the Freeholders’ Counter-Notice.
- Negotiating a price settlement on behalf of the Leaseholders or Freeholders in conjunction with the solicitors.
- Advising on the conditions of the building and any repairs that may need to be made.
- Advising on any maintenance costs and service charges that the Collective may have to pay.
- Advising on how best to manage the property.
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Frequently Asked Questions
Collective enfranchisement is the legal right for qualifying leaseholders to join together and buy the freehold of their building from the freeholder. Owning the freehold gives leaseholders greater control over the management and future of their property.
In general, leaseholders may qualify if both the building and the participating leaseholders meet the eligibility requirements set out in UK leasehold legislation. A specialist surveyor or solicitor can confirm whether your property qualifies.
Buying the freehold collectively gives leaseholders greater control over the management of the building, future lease extensions, service charges, and maintenance decisions. It can also help protect the long-term value of the property.
The premium is calculated using several factors, including the property’s value, the number of flats in the building, the remaining lease terms, ground rent, marriage value (where applicable), and accepted valuation assumptions. Because every property is different, a professional valuation is recommended.
Yes. A specialist RICS Chartered Surveyor can provide an independent valuation, advise on the likely premium, and negotiate with the freeholder on your behalf to help achieve a fair outcome.
The total cost of collective enfranchisement usually includes the freehold premium, valuation fees, legal fees, the freeholder’s reasonable professional costs, and Land Registry or other administrative charges.
Most collective enfranchisement claims take between six and twelve months, depending on the complexity of the case, negotiations with the freeholder, and whether the premium needs to be determined by the First-tier Tribunal.
If the qualifying criteria are met, leaseholders have a legal right to purchase the freehold. While the freeholder cannot usually refuse the claim, the premium and terms may need to be negotiated or determined by the First-tier Tribunal (Property Chamber).
A Chartered Surveyor assesses the property’s value, calculates the likely premium, advises leaseholders throughout the process, and negotiates with the freeholder’s surveyor to help secure a fair settlement.
A specialist Collective Enfranchisement Surveyor understands leasehold valuation legislation, local property values, and negotiation strategies. Their expertise can help you achieve a fair premium while guiding you through every stage of the enfranchisement process.
Speak to one of our valuation experts today about how we can help you: