Collective enfranchisement

Collective enfranchisement is the main alternative to the right to manageRight to manage (RTM)The legal right of qualifying leaseholders of flats in England and Wales to take over the management of their building from the landlord, through a company they control, without having to prove the landlord was at fault or buy the freehold.. Instead of taking over management, the leaseholders buy the building, usually through a freehold companyFreehold companyA company owned by the leaseholders of a building that owns the building's freehold, and so is the landlord under the flat leases..

Key differences from the right to manage

• It costs money. You pay the freeholder a price set by a valuation formula, plus your own and (under current rules) the freeholder's reasonable legal and valuation costs.
• It's permanent. You own the building, receive any ground rent, and can grant longer leases.
• The qualifying rules differ. For example, at least half of the flats must take part, and the building can't have more than 25% non-residential floor space. That limit is still 25% for buying the freehold, even though it rose to 50% for the right to manage in March 2025.

Changes coming

The Leasehold and Freehold Reform Act 2024 will change how the price and costs are worked out, but those parts weren't in force as at October 2026. Get advice from a specialist solicitor and valuer before you start. See Right to manage or buy the freehold?.