Frequently Asked Questions
What is freehold purchase?
Freehold purchase (also known as leasehold enfranchisement) is the legal right for leaseholders to buy the freehold of their property, either individually (for houses) or collectively (for flats). This gives you full ownership of both the property and the land it sits on, eliminating ground rent and giving you control over the building's management.
Why does the number of years remaining on the lease matter?
The length of your remaining lease significantly impacts the freehold purchase cost. Leases with fewer than 80 years remaining trigger "marriage value" - an additional cost that reflects the increase in property value once the lease is extended. The shorter the lease, the higher the marriage value, making the freehold purchase more expensive. Properties with leases above 80 years typically cost less to enfranchise.
What is marriage value and when does it apply?
Marriage value is the increase in the property's value that results from combining the leasehold and freehold interests. Under UK law, when a lease has fewer than 80 years remaining, leaseholders must pay 50% of the marriage value to the freeholder as part of the purchase premium. Marriage value does not apply to leases with 80 years or more remaining, making these purchases significantly cheaper.
Are professional fees and legal costs included in this estimate?
No, this calculator provides only the estimated premium (the price paid to the freeholder). You will also need to budget for:
- Chartered surveyor fees for professional valuation
- Solicitor fees for legal work and conveyancing
- Valuation tribunal costs (if the freeholder disputes the valuation)
- The freeholder's reasonable legal and valuation costs
- Stamp Duty Land Tax (SDLT) if applicable
Professional fees can range from £3,000 to £10,000+ depending on complexity.
Is this estimate legally binding?
No, this calculator provides an indicative estimate only and is not legally binding. The actual premium will be determined by a professional RICS-qualified surveyor who will conduct a detailed valuation taking into account property-specific factors, comparable sales, and current market conditions. The final price may also be subject to negotiation or, if disputed, determination by the First-tier Tribunal (Property Chamber).
Will I need to pay Stamp Duty Land Tax (SDLT)?
Yes, Stamp Duty Land Tax may be payable on freehold purchases depending on the premium amount and your circumstances. SDLT rates and thresholds change periodically, and different rates apply for first-time buyers, additional properties, and non-residential transactions. The calculator does not include SDLT - you should consult with your solicitor or use HMRC's SDLT calculator to determine the tax payable on your specific transaction.