Houses vs flats
If you own a leasehold house, you usually have the right to buy the freehold on your own, provided you meet the qualifying criteria. The process is generally simpler and cheaper than for flats.
If you own a leasehold flat, you cannot buy the freehold of just your flat, you buy the building's freehold collectively with other leaseholders through a process called collective enfranchisement. Alternatively, you can extend your individual lease, which is often simpler if not enough neighbours want to participate.
Benefits of owning the freehold
- No more ground rent to pay.
- Control over service charges, maintenance and buildings insurance.
- Freedom to grant yourselves long, cheap lease extensions (often to 999 years).
- Usually a higher property value and easier resale.
- Avoids the problems caused by very short leases falling below 80 years.
Typical costs to factor in
The premium is the biggest variable, get a specialist valuation before you negotiate.
| Cost | Notes |
|---|---|
| Freehold price (premium) | Depends on value, lease length, ground rent |
| Your legal fees | Conveyancing for the purchase |
| Your valuation fee | Surveyor to assess the premium |
| Freeholder's costs | You usually pay their reasonable legal and valuation fees |
| Stamp duty | May apply depending on the price and rules |
| Company set-up (flats) | Cost of forming a company to hold the freehold collectively |
The collective enfranchisement process for flats
Check you qualify
At least half the flats in the building must participate, and the building must meet the legal criteria.
Get a valuation
A specialist surveyor estimates the premium so you know the likely cost before committing.
Set up a company
Participating leaseholders usually form a company to own the freehold jointly.
Serve the initial notice
Your solicitor serves a formal notice on the freeholder stating your proposed price.
Negotiate and complete
The freeholder responds, the premium is agreed (or set by tribunal), and the purchase completes.
Act before the lease gets short
Once a lease falls below about 80 years, 'marriage value' makes buying the freehold or extending much more expensive. Reforms aim to remove this, but if your lease is approaching 80 years, get advice promptly.
How reform is changing the rules
The Leasehold and Freehold Reform Act 2024 is intended to make it cheaper and easier to buy a freehold or extend a lease, for example by abolishing marriage value and standardising valuation rates. Much of it is being introduced through later regulations.
Because the detail is still being phased in, the cost and process can change. Always check the current position with a solicitor or the Leasehold Advisory Service before serving notices or agreeing a premium.