Morgan Sloane

Our guide to a freehold purchase

Have you just brought your property on a leasehold basis? Or maybe you’re looking to gain more control over your home? In the long run, this process can help you gain control of your property, save yourself money on the financial costs and increase the saleability, especially if your lease is running short.
 
Should you buy the Freehold? 

If you've purchased a new build house but on a leasehold basis, it's worth considering to purchase the Freehold if you're eligible. If you want to purchase the freehold of a flat, the process can be a little more complicated as you will need to involve other residents.  

It's essential to weigh up the lease costs against the freehold purchase price. Even after purchasing the freehold, you will still be responsible for paying for the upkeep of communal areas. This difference is, you’ll have more control over these costs. 

One contributing factor is the length of the lease. If it's long (90 years +), there isn't an urgent need to purchase the freehold. If the lease is shorter, purchasing the freehold may be a wise investment. It should add value to the property and will increase the saleability.  It will also become more attractive to potential buyers. 

Are you eligible to buy the freehold? 

There are various requirements needed to make you eligible for freehold purchase. These may include, living in your property for more than two years or that the building contains more than two flats also no more than a quarter of the property can be used for non-commercial use. 

How much does the freehold cost? 

The prices can vary depending on the property and lease, however, the shorter the lease, the more expensive it is to purchase. Make sure you keep in mind these costs that will also be included in this process.  

  • The premium price of the freehold
  • A valuation surveyor
  • Legal fees
  • The freeholders legal and valuation fees

How do you start the process? 

Once you’ve weighed up your factors and discovered whether your building is eligible, you'll be ready to start the process. 

If you’re buying the freehold for a flat, you’ll need to speak to your neighbours to get involved. At least half of the flats in the building need to confirm they are happy to buy the freehold to proceed. 

Find out the cost of the freehold and factor in additional costs that will be included. Legal fees and solicitors fees are all factors to take into account.

Once you’ve taken this into account, it’s essential you get legal advice from a specialist within leasehold enfranchisement. They'll draw up a participation agreement — a contract between all leaseholders taking part and outline all terms and agreements. At this point, you will also pay a professional surveyor to value the freehold for you. 

Next step will be to issue a tenants notice. This will be sent to the landlord, requesting the purchase of the freehold. Once received, the landlord will send a “notice in reply” within two months. If the landlord is not in agreement with the purchase, they will have to state the reasons why.

The process of buying the freehold for your house can be a lot simpler than a flat. Without the need to recruit others to purchase the freehold, it can be more seamless, however, you still need to invest in the help of an experienced leasehold solicitor and surveyor.

Are you ready to discuss a freehold purchase further? Contact us on 0800 161 5767 or email us.

Have a project that you need help with?

Enquire now