Freehold Purchase Calculator UK
This Freehold Purchase Calculator gives a ballpark estimate of the premium you might pay to buy the freehold of a leasehold property in England & Wales. It can be used for leasehold houses, single flats and collective enfranchisement cases, but it should only be treated as a starting guide before taking advice from a RICS chartered surveyor or enfranchisement solicitor.
Leasehold reform update
Leasehold law is changing in stages. Since January 2025, leaseholders no longer need to wait two years before starting a statutory lease extension or freehold purchase claim. From March 2025, the non-residential limit for collective enfranchisement and Right to Manage has increased from 25% to 50%, which may help more mixed-use buildings qualify.
Some wider valuation reforms, including changes that may affect marriage value, ground rent and prescribed rates, are still being implemented. This calculator uses a general guide based on the current-style valuation approach, so get specialist advice before serving a notice.
Advanced Settings
For leasehold houses (1967 Act):
- You must own the lease (no minimum ownership period since January 2025)
- The original lease was granted for more than 21 years
- The house meets the "low rent" test or other qualifying criteria
For collective enfranchisement (1993 Act):
- At least 50% of qualifying tenants must participate
- No more than 50% of the internal floor area should be non-residential for many mixed-use collective claims, but confirm the floor area test before serving notice
- The building must contain at least two flats held by qualifying tenants
- You are a "qualifying tenant" with a long lease (originally over 21 years)
- Get a professional valuation: Instruct a RICS chartered surveyor experienced in leasehold enfranchisement to provide an accurate premium estimate.
- Consult an enfranchisement solicitor: They will guide you through the legal process, serve notices, and handle negotiations.
- For collective claims: Coordinate with fellow leaseholders, form a nominee purchaser company, and ensure at least 50% participation.
- Budget for additional costs: Include surveyor fees, legal fees, Land Registry fees, potential SDLT and any landlord costs that still apply to your claim type.
How is the enfranchisement premium calculated?
The premium usually reflects the capitalised value of ground rent, the reversion value at the end of the lease and, under the current-style valuation approach, marriage value where the lease has fewer than 80 years remaining. For collective enfranchisement, hope value for non-participating flats may also be considered. The final figure can change after professional valuation and negotiation.
What is the difference between buying the freehold and extending my lease?
Buying the freehold gives you outright ownership of the land and building (for houses) or a share of freehold (for flats), eliminating ground rent entirely and giving you control over maintenance and insurance. A lease extension simply adds years to your existing lease (typically 90 years on top of the unexpired term for flats) and reduces ground rent to a peppercorn (zero). For flats, collective enfranchisement often works out cheaper per flat than individual lease extensions and provides long-term control.
Why does having fewer than 80 years on my lease increase the cost?
Under the current-style enfranchisement valuation approach, leases below 80 years can include marriage value, which reflects part of the extra value created when the leasehold and freehold interests are brought together. The 2024 reforms include valuation changes, but not every valuation measure is fully in force, so you should check the latest position before relying on any estimate.
What are capitalisation rate and deferment rate?
The capitalisation rate converts the annual ground rent into a capital sum, the higher the rate, the lower the capitalised value. Typical rates range from 6% to 8%. The deferment rate discounts the future freehold reversion to present value; the Sportelli case established 5% for houses and 4.75% for Prime Central London flats. Lower deferment rates result in higher reversion values and thus higher premiums.
How does doubling ground rent affect my premium?
Ground rent clauses that double every 10, 15 or 25 years can increase the capitalised ground rent part of the premium because future rents may become much higher. Some ground rent and valuation reforms are still being implemented, so this calculator treats the lease terms you enter as the starting point and does not replace specialist valuation advice.
Do I still need to pay the freeholder's legal costs?
For freehold purchase and lease extension claims, landlord cost rules can depend on the claim type and which reform provisions are in force when you act. Do not rely on a calculator for this point. Ask your solicitor which freeholder legal or valuation costs may still apply before you serve notice.
What is "hope value" in collective enfranchisement?
Hope value compensates the freeholder for the potential future profit from non-participating flats that don't join the collective purchase. Since the new freehold company will eventually collect ground rent and reversion from these flats, the outgoing freeholder receives a share of that expected gain. It typically adds 5-15% to the premium attributable to non-participating units.
What happens if the freeholder disputes our valuation?
Negotiations are common, and if you cannot agree on the premium, either party can apply to the First-tier Tribunal (Property Chamber) for a binding determination. The Tribunal will assess evidence from both sides' valuers and set a fair premium. Having a robust valuation from an experienced RICS surveyor strengthens your position.
Can I buy the freehold of my flat individually?
Generally, no. Individual flat leaseholders cannot enfranchise alone under the 1993 Act, you need collective action with other qualifying tenants, or the freeholder must voluntarily agree to sell. However, if you and fellow leaseholders already own the freehold collectively (share of freehold), you effectively control the building without needing further enfranchisement.
How long does the freehold purchase process take?
For leasehold houses, the process often takes 4 to 6 months from serving notice. Collective enfranchisement for flats is more complex and may take 6 to 12 months or longer, especially if negotiations are slow or a Tribunal application becomes necessary. An organised group and responsive professionals can help keep the process moving.
What leasehold reform changes are already in force?
The two-year ownership rule for lease extension and freehold purchase claims was removed from January 2025. From March 2025, the non-residential limit for collective enfranchisement and Right to Manage increased from 25% to 50%. Other valuation changes are being introduced in stages, so check current guidance before acting.