How much does it cost to convert leasehold to freehold?
For many homeowners, owning the freehold is the ultimate goal. It removes ground rent, increases control over your property, and often adds value. But the process of buying out the freeholder comes at a cost — sometimes straightforward, sometimes eye-watering.
This guide explains what influences the cost, how much you can expect to pay in professional fees and premiums, and why timing (such as whether your lease is above or below 80 years) makes such a difference.
- The cost to convert leasehold to freehold in the UK typically ranges between £6,000 and £8,500, but can be higher depending on the property’s value, lease length, and ground rent.
- Costs rise sharply if the lease has fewer than 80 years remaining due to marriage value (where the freeholder shares in the uplift in property value).
- Expect to pay professional fees including a surveyor (£500–£1,500), solicitor (£500–£1,800), and your freeholder’s legal costs (£500–£1,500).
- Other costs include Land Registry fees, tribunal fees if disputes arise, and stamp duty in rare cases.
- The process usually takes 6–12 months, though complex cases or uncooperative freeholders can push it over a year.
- If the costs, time, and hassle outweigh the benefits, selling your leasehold home and buying a freehold property instead may be a better option.
What makes up the cost?
When you buy your freehold, you’re compensating the freeholder for three things:
- Lost ground rent.
- The value of eventually getting the property back (reversion).
- Any uplift in value when your lease is extended (marriage value, if under 80 years).
Alongside this, you’ll face professional and legal fees.
Typical professional fees
Average overall cost: £6,000–£8,500 for a straightforward case.
Marriage value explained (and why 80 years matters)
One of the biggest drivers of cost is lease length.
- Above 80 years: You only pay for the freeholder’s lost ground rent and reversion value.
- Below 80 years: The law requires you to pay marriage value — usually 50% of the increase in property value that comes from extending the lease or buying the freehold.
This can add tens of thousands to the premium. For example:
- Extending at 82 years might cost £5,000.
- Waiting until 78 years could push the cost to £20,000 or more.
Upcoming reforms: The Leasehold and Freehold Reform Act 2024 is expected to abolish marriage value. Until those reforms are implemented, however, the 80-year cut-off remains crucial.
Ground rent as an income stream
Ground rent isn’t just a nuisance payment — to the freeholder, it’s a guaranteed income.
When you buy the freehold, the freeholder is compensated for losing this income stream. The calculation looks at:
- Present value of future rents over the remaining lease term.
- Whether the ground rent escalates (linked to inflation or reviews).
- How secure the income is (default rates are very low).
This is why properties with high or escalating ground rents are more expensive to convert.
Other valuation factors
Beyond lease length and ground rent, freeholders can argue for additional value:
- Reversion value: The right to get the property back at lease expiry.
- Development potential: If the freeholder could have added floors or converted space.
- Yield rate: Market interest rates impact how future values are calculated.
- Ancillary income: Service charges, lease extension fees, or management charges.
Each of these can push the freehold premium higher, making valuations complex and sometimes disputed.
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Example scenarios
Case 1: Flat with 90 years left, modest ground rent
- Premium: ~£4,000–£5,000.
- Professional fees: ~£2,000.
- Total cost: ~£6,000–£7,000.
Case 2: House with 78 years left, £250 ground rent
- Premium (with marriage value): £15,000–£20,000.
Professional fees: £2,500–£3,000. - Total cost: ~£18,000–£23,000.
Case 3: Lease with escalating ground rent clauses
- Premium: £10,000–£12,000.
- Legal/surveyor fees: £2,500.
- Total cost: ~£12,500–£14,500.
How long does it take?
A typical freehold purchase takes 6–12 months, but factors like disputes, tribunal hearings, or missing title documents can push it longer. The process includes:
- Getting a valuation.
- Serving notice on the freeholder.
- Negotiation or tribunal if no agreement.
- Paying the premium.
- Registering the freehold with the Land Registry.
Alternatives to buying the freehold
- Extending the lease: If marriage value is looming, a lease extension might be cheaper short-term, though you’ll face costs again later.
- Collective enfranchisement: If you’re in a block of flats, you may be able to buy the freehold together with other leaseholders, spreading the cost.
- Do nothing (short-term): Sometimes the maths doesn’t justify it yet, but keep an eye on lease length and reforms.
When selling may be simpler
For some homeowners, the cost and complexity of converting leasehold to freehold feels overwhelming. If your lease is short, ground rent is escalating, or the premium is unaffordable, it may be more practical to sell the leasehold and reinvest in a freehold property.
At Habello, we buy leasehold flats and houses directly for cash. That means:
- No estate agent fees.
- No lengthy chains.
- Flexible timelines to suit you.
- A guaranteed sale, even if the lease is short.
If you’d rather move on without paying thousands to secure the freehold, we’ll make you a fair, no-obligation cash offer.
Recap: how much does it cost to convert leasehold to freehold?
- Average overall cost: £6,000–£8,500, but can be much higher if the lease is short or ground rent is high.
- Under 80 years? Marriage value applies, adding thousands.
- Professional fees alone typically run £1,500–£4,000, plus you must pay the freeholder’s costs.
- The process takes 6–12 months, sometimes longer.
- Selling may be simpler if costs spiral — we’ll give you a guaranteed offer to help you move on.
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