The average cost of buying the freehold is around £8,500. This is based on the value of the house and a share of its marriage value. You take the current value of the property, the years left on the lease and the annual ground rent.
Our figure was using an average leasehold of 99 years and the average UK house price. This is £292,000 as well as an average ground rent of around £366. You can work out the cost of yours by using the Freehold Calculator.
This will vary on a case-by-case basis. Like house prices, it can be vastly different. The freehold for a 4-bedroom flat in London will cost more than the freehold on a studio flat in Hull.
Total Costs of Converting Leasehold to Freehold
Converting your leasehold to freehold involves a range of expenses beyond just the purchase price. Below is a full breakdown of all the typical costs you may need to cover during the process, including the freehold premium, professional fees, and legal charges.
- Freehold Premium
- RICS Valuation
- Surveyor Fees
- Solicitor Fees
- Disbursements
- Freeholder Fees
- Stamp Duty
- Setting Up a Company
You can read more about how much each of these costs, and whether they're necessary for you, in the detailed sections below.
Freehold Premium: £8,500
As the leaseholder, you’ll need to pay the freeholder a premium to buy the freehold of the property. This typically costs around £8,500, though the exact amount depends on your home’s market value, lease length, and annual ground rent.
RICS Valuation: £452
Each participating leaseholder is legally required to get a professional valuation (Collective Enfranchisement Valuation Report) of their property. Based on the average UK house price of £292,000, a valuation report will cost around £452* per flat. If a building contains 14 flats, you can expect to pay a collective total of £6,328. This is typically carried out by a RICS-accredited surveyor.
This cost covers the report itself. You’ll also need to pay additional fees for the surveyor’s time and services, explained below.
Surveyor Fees: £488
On top of the report fee, surveyors typically charge for any extra work, such as:
- Negotiating the freehold price with the freeholder’s surveyor
- Providing ongoing advice
- Attending meetings or site visits
These additional surveyor fees average around £488 per flat, but may vary depending on complexity and involvement.
Solicitor Fees: £1,250
A Leasehold Enfranchisement solicitor is needed to handle the legal aspects of the freehold purchase. Fees are dependent on the complexity and the number of leaseholders involved.
Disbursements: £1,687
These are admin and third-party charges on top of your solicitor fees. They include:
| Bank transfer fees | £32 |
| Bankruptcy checks | £6 |
| Transfer of ownership with the land registry | £20-£500 (online) £45-£1,105 (post)* |
| Freeholder's costs | Around £814 |
*Data taken from HM Land Registry Registration Service Fees and HM Land Registry Information Service Fees
Use our Conveyancing Fees Calculator for a tailored estimate.
Freeholder's Fees: £1,302
You'll be responsible for covering the freeholder's reasonable costs, which usually include their legal and surveyor fees.
These fees are generally in line with standard conveyancing costs for a property sale, which average around £814. In addition, you should expect to cover surveyor costs, with the average survey in the UK costing approximately £488*.
Stamp Duty: 2-12% on Portion Over £125,000
By law, if the freehold costs more than £125,000 in England and Northern Ireland, you must pay stamp duty on the portion over that threshold.
The percentage varies by country:
| Country | Stamp Duty Percentage |
|---|---|
| England | 2% - 12% |
| Northern Ireland | 2% - 12% |
| Wales | 6% - 12% |
| Scotland | 2% - 12% |
Use our Stamp Duty Calculator to work out the exact costs.
Setting Up Company: £50*
If more than one leaseholder is buying the freehold, it's common to set up a company to manage ownership.
* Data taken from Gov.UK
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Why Buy the Freehold?
For everyone who can afford it, converting a leasehold to a freehold is a no-brainer. You end up saving more money in the long run, and it gives you full control of your property.
However, to make sure it's the best option for you, see a list of the main pros and cons below:
Advantages:
- Complete ownership of your property and long-term security
- Control over how the property is altered, managed and maintained
- Adds value to the property (around 1% extra)
- Makes the property more attractive to potential future buyers
- The lease is usually extended for free (typically to 999 years)
- Cheaper in the long run (no maintenance charges or ground rent)
- Doesn't cost much more than extending the lease
Disadvantages:
- Upfront cost of around £8,500
- Requires coordination with neighbours if it's a flat
- You become responsible for building work, maintenance, and repair costs
Is it Cheaper to Extend the Lease?
Not necessarily. A lot of people assume that extending the lease is cheaper than buying the freehold. However, in the majority of instances, the costs are surprisingly similar.
Buying the freehold can also save you more in the long run. You’ll no longer pay ground rent, and you’ll have full control over how your property is managed.
Plus, when you buy the freehold, the lease is usually extended to 999 years automatically.
Unless you're dealing with a very short lease or only want a quick fix, buying the freehold is often the much better value overall.
Use an online Freehold Calculator to provide a rough estimate of your specific costs.
How Much Value Does Buying the Freehold Add?
Buying the freehold typically adds around 1% to the property’s value. This increase in price is also known as the marriage value.
If the property is valued at a reasonable price, this can be significant when it comes to equity in the property and selling.
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Recent & Upcoming Leasehold Law Reforms
In recent times, we've noticed that leasehold laws have changed, typically in favour of the leaseholder. Now, leaseholders have more control and rights.
These laws change often, so it's important to stay on top of them to know how they impact you and whether it's worth waiting until a specific law comes into force before taking action.
| Change | Current Status | Impact |
|---|---|---|
| Marriage Value Abolished | Bill stage (not yet in force) | Expected to cut premiums on leases <80 years by ~15%. |
| 990-Year Statutory Lease Extensions | Passed | Reduces need for repeated extensions |
| Peppercorn Ground Rent on new Leases | In force | New properties can't charge ground rent |
| Ban on new Leasehold Houses | Scheduled for 2026 | All new-builds to be freehold by default |
Next Steps: How to Find a Surveyor
Compare My Move can connect you with up to 6 local surveyors who can carry out a valuation report for you. This will allow you to convert your leasehold to freehold successfully. Simply fill out our online comparison form today to compare quotes and surveyors. All our partners are trusted, verified and RICS-registered.
Need a Conveyancer?
We recommend hiring a conveyancer to handle the legal aspects of converting your leasehold. There is a lot of paperwork involved, and they will ensure this is completed correctly. Fill out our quick and simple conveyancing form and get connected today.
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How to Calculate the Cost of Converting The Freehold
The cost of converting the freehold can be broken down into the following simple equation:
The value of the property the freehold receives when the lease finishes + the value of the ground rent + the marriage value (if there are less than 80 years left on the lease).
The figure you are left with is the total cost of converting the freehold, which can then be added to other additional costs and disbursements to get the total cost.
*Based on the average service costs for Compare My Move users and our own research. See how our data works.
