Answers · UK 2025/26
How much does it cost to buy the freehold of a leasehold property?
The cost to buy your freehold (enfranchisement) is calculated using a statutory formula: capitalised ground rent value plus, if the lease has fewer than 80 years remaining, 50% of the "marriage value." Typical costs range from a few thousand pounds for high-lease/low-ground-rent properties to tens of thousands where the lease is short.
Full answer
**What is freehold enfranchisement?** Leasehold homeowners have the legal right to buy the freehold of their building (or their house) from the freeholder, under the Leasehold Reform Act 1967 (houses) or Leasehold Reform Housing and Urban Development Act 1993 (flats). This is called collective enfranchisement for flats or individual purchase for houses. **How is the price calculated?** The statutory formula has three components: 1. **Ground rent capitalisation**: the present value of all future ground rent payments (reflects what the freeholder will lose) 2. **Reversion value**: the value of getting the property back at lease expiry (discounted for remoteness if lease is long) 3. **Marriage value**: applicable only when the lease has fewer than 80 years remaining — 50% of the increase in property value that the combined freehold+leasehold would achieve **The 80-year threshold is critical** When a lease drops below 80 years, marriage value kicks in and the purchase price can increase substantially. This is why leaseholders are advised to extend or purchase before reaching 80 years. **The Leasehold and Freehold Reform Act 2024** This Act (in force from various dates through 2024–2026) makes significant changes: - Removes the 2-year ownership requirement before you can enfranchise - Bans new leasehold houses - Improves transparency of service charges - Future changes to marriage value calculation are planned (not yet in force for all provisions) **Example: David, flat with 90-year lease, £200/year ground rent** Lease >80 years → no marriage value - Ground rent capitalisation: £200 × ~8.5 (capitalisation rate) = ~£1,700 - Reversion value: modest (long lease, remote reversion) - Estimated freehold purchase: £3,000–£8,000 (plus solicitor and surveyor fees) **Example: Sarah, house with 72-year lease, £150/year ground rent, property worth £300,000** Lease <80 years → marriage value applies - Lease extension adds approximately £15,000 to value (illustrative) - Marriage value (50%): £7,500 - Plus ground rent and reversion elements: £5,000 - Estimated cost: ~£12,500 (plus professional fees of £3,000–£5,000) **Process** Serve an initial notice on the freeholder, negotiate, and if needed go to the First-tier Tribunal (Property Chamber) for independent valuation.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.