Comparison · Property · 2026
Collective Enfranchisement vs Right to Manage UK 2026: What Leaseholders Can Do
Collective enfranchisement and Right to Manage are two separate statutory rights that let leaseholders take more control of their building, but they achieve very different things. Collective enfranchisement means buying the freehold outright, giving leaseholders full ownership. Right to Manage means taking over the day-to-day running of the building while the freeholder keeps ownership. Here is how they compare under the Leasehold and Freehold Reform Act 2024 for 2026.
TL;DR - 30-Second Summary
- - Right to Manage: take over management without buying anything, low cost, no need to prove fault by the landlord
- - Collective enfranchisement: buy the freehold outright, full ownership and control, significantly higher cost (market value of the freehold)
- - Common strategy: do Right to Manage first for quick control, then pursue enfranchisement later
Side by Side: Collective Enfranchisement vs Right to Manage
| Feature | Collective Enfranchisement | Right to Manage |
|---|---|---|
| What you get | Ownership of the freehold | Control of building management only |
| Typical cost | Market value of freehold, often tens of thousands of pounds+ | Legal/admin fees only, typically a few thousand pounds |
| Ground rent | Can be addressed as new freeholder | Unaffected — still payable to freeholder |
| Landlord consent needed | No — statutory right, price is negotiated/determined | No — automatic statutory right if eligible |
| Participation threshold | At least 50% of qualifying leaseholders | At least 50% of qualifying leaseholders |
| Process length | Often 6-18 months, can be longer if contested | Typically 3-6 months |
| Reversibility | Permanent asset owned by leaseholders | RTM company can be dissolved/replaced |
How Collective Enfranchisement Works
Qualifying leaseholders (typically those with leases originally granted for more than 21 years, though the 2024 Act relaxes some qualifying criteria) form a nominee purchaser company and serve a formal notice on the freeholder proposing to buy the freehold at a specified price. The freeholder can counter-propose a price, and if the parties cannot agree, the First-tier Tribunal (Property Chamber) determines the price using a statutory valuation method.
Once completed, the leaseholders collectively own the freehold through their company, giving them control over service charges, ground rent, lease extensions granted to participating and non-participating leaseholders, and the appointment of managing agents.
How Right to Manage Works
Qualifying leaseholders form an RTM company and serve a formal claim notice on the freeholder. Unlike enfranchisement, there is no requirement to prove landlord mismanagement or fault, and no price to negotiate — it is essentially a formality once the eligibility and participation thresholds are met. After the process completes (usually a matter of months), the RTM company takes over responsibility for repairs, insurance, service charge collection and managing agent appointments.
The freeholder retains legal ownership of the building throughout, and the lease terms (including ground rent obligations) remain unchanged — RTM affects only who manages the building, not who owns it or what the lease says.
Who Should Choose What?
- - You want faster, lower-cost control over management issues
- - The leaseholder group cannot yet afford to buy the freehold
- - Your main concern is poor management, not ground rent or lease terms
- - You want to eliminate or reduce ground rent long-term
- - The group can fund the freehold purchase cost
- - You want full, permanent control including granting lease extensions