Freehold Purchase & Lease Extensions

How do I go about buying my property’s freehold?

Once you are the registered owner of a property, you have the right to buy your freehold at a fair price. This is known as enfranchisement. There are two ways it can be done, either formally or informally and there are pros and cons of both.

It is often the case that the freeholder will be willing to sell, but if they are reluctant or refuse to be reasonable, you may need to invoke your statutory rights. To submit a formal application, you will potentially need to instruct a solicitor or legal expert to ensure the correct notices are served, fees paid and everything is dealt with in a given timescale.

Once notice has been served, it can be transferred to the buyer of your property, if purchasing the freehold is a condition of the sale. It is important to note that from this point, you are responsible for paying the reasonable conveyancing and valuation fees of the freeholder and any intermediary landlord involved.

Serving notice will not automatically result in the freeholder putting forward a price and if negotiations stall, you may have to make an application to the first-tier tribunal to achieve a resolution. Unfortunately, this process can take between four and six months although there is no fixed timescale.

What do you need to do before you start the purchase process?

You should be aware that some freeholders can be reluctant to sell or will drive a hard bargain, making the process both time-consuming and expensive.

Exercising your legal right to purchase a freehold is known as ‘enfranchisement’, and there are two ways it can be done – formally or informally. There are pros and cons to both.

Hopefully, the freeholder will be willing to sell, but if they are reluctant or refuse to cooperate, you may need to invoke your statutory rights. We can help you with this.

It’s important to note that once formal notice is served you are responsible for paying the freeholder’s reasonable conveyancing and valuation fees and any intermediary landlord involved in the transaction, even if you subsequently withdraw from the process. What do you need to do before you start the purchase process?

What will your freehold likely cost?

There is no scientific formula for determining the price of a freehold. The legislation in place (The Leasehold Reform Act 1967) requires the leaseholder to sufficiently compensate the freeholder with a fair price based on the open market value as closely as is practical.

If you and the freeholder cannot agree on a price, an application can be made to try and determine a compromise. This can get complex, so our experts will guide you through this.

You may find your property is held on an ‘Under Lease’; if this is the case, you will need to purchase both the freehold and leasehold titles to own the freehold outright. If the freeholder is unknown, there is a procedure in place to assist with the purchase and we may be able to assist you with this.

Is there any alternative to buying the freehold?

Legislation is in place allowing you to extend your lease by 50 years. There is no premium to pay, but you are still liable for the landlord’s legal and valuation fees. These tend to vary and can be substantially more than the cost of buying the freehold.

If you are concerned about the length of your lease or any of its terms, consider your options carefully and if you have any further questions about buying a freehold, don’t hesitate to contact us.

Is it worth buying my freehold if my lease is long?

Even with a long lease often 100 years or more, buying the freehold can bring valuable benefits, such as removing ground rent payments, giving you greater control over decisions affecting your property, reducing the risk of future disputes or unexpected charges, and improving the property’s saleability. However, if your lease is already very long and the ground rent is low, purchasing the freehold may not be immediately necessary. The key is to avoid being pressured into paying an inflated premium. Before committing to anything, we can obtain a valuation of the freehold, advise whether the proposed price is fair, and guide you through your statutory rights to help prevent overcharging.

How do I know if the freehold purchase price I’ve been quoted is fair?

Before paying anything for your freehold, it’s sensible to obtain a professional valuation and compare it with the freeholder’s offer to check the price is fair. You can also ask us to review the calculation to ensure it has been assessed correctly. Our team can help you avoid overpaying and, if appropriate, guide you through the statutory freehold purchase process, which offers protections against inflated pricing.

What should I do if I think my property has been altered or extended in a way that breaches the lease?

If you suspect that a previous owner carried out alterations, such as a loft conversion, conservatory, or other structural changes, without the required freeholder’s consent, it’s important to investigate. Start by asking your conveyancing solicitor to review your lease to identify what permissions should have been obtained, and check whether any consent was recorded in the title documents or provided through the seller’s replies to enquiries. If no consent exists, or you have carried out alterations without seeking the appropriate consent, it is possible you can obtain a retrospective consent. We can assist by reviewing the lease for you and if appropriate securing a retrospective licence for alterations or reviewing any charges the freeholder seeks to impose to ensure they are reasonable. Resolving this early can help avoid complications when selling or remortgaging your property.

I’m worried my freeholder may try to charge high fees for alterations. Can this be challenged?

Yes. Freeholders must charge reasonable fees for providing consent or documentation, and they must supply a summary of your rights and remedies when issuing an invoice. Excessive, unjustified, or aggressive demands can often be challenged.

We can review any fee request and advise whether:

• It is reasonable
• Negotiation is possible, or
• It can be formally disputed.