Many owners of flats prefer the option of freehold acquisition in principle because it does not need to cost a huge amount more than the lease extension on its own, depending on how many flats in the building take part. Plus there is a romantic attachment to "owning" the property outright. This involves serving a Section 13 Notice on the freeholder.
However, in practice, it is not always possible to complete the freehold purchase for a number of reasons. The main hurdle to achieve is that 50% or more of the owners in a separate building must agree to participate in the freehold acquisition, in order for them to compel the freeholder to sell. Not all the neighbours have either the money or will to undertake the process.
In addition, freehold acquisition means creating a new company to buy the freehold and in many blocks it is difficult finding owners willing to be directors of that company and to run its affairs. There is considerable work, diplomacy and effort required to be an owner helping to run the freehold company, and this is often underestimated.
Another impediment is that those participating need to cover the cost of those not participating. In essence, if 50% of the building wanted to proceed, it is roughly twice the cost per participant compared with 100% deciding to go ahead.
However, if you can rally your neighbours and reach the 50% threshold, then freehold acquisition becomes a possibility. Once the freehold is acquired, it is a formality with little additional cost to extend the lease to 999 years. As you can see, it is incorrect to describe any flat as a "freehold flat" because technically it is still governed by a lease, even though the owner is both the leaseholder and a shareholder in the freehold company.
