Freehold Purchase Calculator

Buying the freehold is a different calculation from extending a lease, and the two are often
confused. For a house, the process is enfranchisement under the Leasehold Reform Act 1967. For a
flat, you cannot buy the freehold on your own at all — you buy it collectively with the other
leaseholders in the block under the 1993 Act. The arithmetic below sets out what drives the
figure in each case.

Buying the freehold of a house

The price is essentially the value of the freeholder’s interest: the capitalised ground rent
plus the value of getting the house back at the end of the term. Where the lease is long and the
ground rent small, that number can be modest. Where the lease has fallen below 80 years,
marriage value enters the calculation and the price rises steeply, exactly as it does on a flat.

Buying the freehold of a block collectively

At least half the flats in the building must participate, and the building must meet the
qualifying tests — no more than 25% non-residential floorspace, at least two flats, and at least
two-thirds of the flats held on long leases. The price is the sum of the individual flat
calculations plus the value of any development potential in the block, which is where disputes
most often arise. Loft space, an unused basement, or a large garden with planning promise can add
materially to what the freeholder will argue for.

Indicative freehold purchase costs

Ranges below are typical UK market fees for the work described, shown so you can budget. They are not a quotation. We give a fixed, written fee for your specific property before any work starts.

Situation	What drives the price	Typical range
House, 95+ years, low ground rent	Capitalised rent only	£3,000 – £8,000
House, 85 years, £100 ground rent	Rent plus reversion	£8,000 – £15,000
House, under 80 years	Rent, reversion and marriage value	5% – 15% of house value
Flat, collective purchase	Sum of flat premiums plus development value	Per-flat cost close to a lease extension premium

The costs on top

In both routes you pay the freeholder’s reasonable valuation and legal costs as well as your
own. On a collective purchase there is also the cost of setting up the company that will hold the
freehold, and the participation agreement between the leaseholders — the document that stops the
process collapsing when one flat changes hands halfway through.

Is it worth buying the freehold?

Usually yes, on a house, if you intend to stay. You remove the ground rent, you remove the
consent-and-fee relationship with a landlord, and you make the property easier to sell and to
mortgage. On a flat, collective enfranchisement gives the leaseholders control of service charges
and insurance, which is often worth more than the arithmetic suggests. Against that, it is slower
and more expensive than a lease extension, and it needs your neighbours to agree.

RICS valuations for freehold purchase

We value freehold interests for leaseholders and for freeholders across Canterbury and Kent,
including collective enfranchisement claims where development value is in issue. If you are being
quoted a price by a freeholder, an independent valuation is the only way to know whether it is
defensible.

Frequently asked questions

Can I buy the freehold of my flat on my own?

No. Individually you can extend your lease; to buy the freehold you need at least half the flats in the block to join a collective claim.

Is buying the freehold cheaper than extending the lease?

On a house, usually. On a flat, the per-flat cost is comparable to a lease extension but you also gain control of the building.

Do I need to have owned the property for two years?

For a house under the 1967 Act, yes. For a collective claim on flats there is no individual ownership period, but the qualifying tests on the building must be met.