A complete breakdown of freehold purchase costs in 2025, including the premium calculation, all professional fees, and a worked example for a typical UK leasehold house.
Purchasing the freehold of your leasehold house permanently converts it to outright ownership. No more ground rent, no lease expiry, no need to ask permission for alterations, and a significant uplift in property value and mortgageability. For most leasehold house owners, it is one of the best financial decisions they can make.
For most leasehold houses, the freehold premium is between 1% and 4% of property value — often less than a single year of combined ground rent and service charges.
House: £320,000 | Lease: 78 years | Ground rent: £250/yr
Premium: approximately £7,500 | Your fees: approximately £1,900 | Freeholder fees: approximately £2,100 | Land Registry and searches: approximately £335
Total estimated outlay: approximately £11,835
In virtually all cases, yes. The value added to your property typically equals or exceeds the premium paid. You also save all future ground rent, gain full alteration rights, and permanently eliminate lease depreciation risk. Always instruct a specialist enfranchisement solicitor from the outset.
For a house, freehold purchase costs typically range from £2,000 to £20,000+ depending on the ground rent, lease length, and property value. For a flat (via collective enfranchisement), expect £10,000–£40,000 per flat plus professional fees. The premium is calculated using RICS methodology based on capitalised ground rent, reversionary value, and marriage value where applicable.
You pay your own solicitor (£1,500–£3,500), your own surveyor (£750–£2,000), Land Registry fees (£20–£500), and critically, the freeholder's reasonable legal and valuation costs which you are legally obliged to meet — typically £1,500–£4,000 for a straightforward case. Total professional costs on top of the premium usually run £4,000–£8,000.
In most cases yes — particularly for houses, where freehold ownership eliminates ground rent, removes the freeholder's control, and increases property value by 1–3%. For flats, the calculation is more complex, but owning the freehold collectively allows you to extend leases to 999 years at zero cost and manage your own building, saving significant ongoing expenditure.
For houses: No. Under the Leasehold Reform Act 1967, qualifying tenants have a statutory right to buy their freehold and the landlord cannot refuse. For flats: No, provided the building qualifies and at least 50% of leaseholders participate under the 1993 Act. If they dispute the premium, the First-tier Property Tribunal determines the price.
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Calculate Now →This article is for general information only and does not constitute legal or financial advice. Always consult a specialist solicitor and RICS surveyor before taking any action.
We'll notify you when 2024 Act provisions come into force, new rates are published, and when landmark Tribunal decisions affect your premium.