Buying the freehold of your property from the landlord, whether on your own or with neighbours, boosts your property's value, makes it easier to sell, and gives you full ownership of it and the land it sits on.
But if you’ve already started looking into the process, you’ve probably already come across confusing legal terms, strict rules, and unclear instructions.
That's why we highly recommend using a qualified solicitor. They'll handle the legal side of the purchase and keep you on track at every stage.
Unlike most other websites, Compare My Move can connect you with up to 6 conveyancing solicitors in your local area, so you can choose the best one for your needs.
This article will explain the process of buying the freehold and the difference between buying a freehold individually compared to collective enfranchisement.
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Should You Buy the Freehold?
If you can afford it, we strongly recommend buying the freehold of your property. Other than the cost, there is essentially no downside.
Plus, you'll end up saving money in the long-run as you won't have to pay ground rent anymore, and you'll be able to sell the property for a higher fee.
Here's a full list of the main benefits and drawbacks:
| Pros | Cons |
|---|---|
| Don't have to pay ground rent anymore | Expensive |
| You have full control over your property | Requires co-ordination with neighbours if in a flat |
| Extend lease more easily | Long process (up-to one year) |
| Adds value to your flat | Relatively strict eligibility criteria |
Types of Freehold Purchase: Individual vs Collective Enfranchisement
In England, leasehold properties are more common than many people realise. According to UK Government data from 2023, there are around 1.4 million leasehold houses and 3.4 million leasehold flats.
Whether you buy individually or with other leaseholders depends on your property type:
- If you own a leasehold house, you'll be able to purchase the freehold on your own.
- If you own a flat, the process is usually done collectively with your neighbours, through something called collective enfranchisement. This gives you greater control over the building, and the ability to extend your own lease.
Though both routes achieve the same outcome of owning the freehold, they differ in several key ways:
| Individual Purchase | Collective Enfranchisement | |
|---|---|---|
| Valuation | Single property | Multiple flats in one building |
| Legal Fees | Leaseholder and the freeholder | Shared between multiple leaseholders and the freeholder |
| Eligibility | Must own lease for whole house (if converted to flats) | At least half of leaseholders must participate |
| Process | Started by singular leaseholder | Requires coordination across leaseholders |
| Structure | Single ownership transfer | Involves setting up a company |
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Why You Need a Freehold Solicitor (& What They Actually Do)
The process of purchasing a freehold either individually or collectively can be long and complicated. A qualified solicitor can remove a lot of the stress by guiding you through the process.
Here are the key tasks your solicitor will take care of and the updates you should expect at each stage:
Negotiate with the Freeholder
They will liaise with the freeholder on your behalf, ensuring all the right questions are asked and necessary documents are obtained. They'll also negotiate the financial terms of the purchase.
Prepare and Serve Legal Notices
Your solicitor will prepare, draft, and serve any required legal notices for the purchase. This includes the Tenant’s Notice. These notices trigger the legal process and set the timeline for the transaction.
Register the Freehold with the Land Registry
They will register your ownership of the freehold with the Land Registry. They will also pay the fees on your behalf, including them in your final bill.
Explain Any Covenants Attached to the Freehold Title
Restrictive covenants are conditions set by the freeholder or landlord that can limit what a leaseholder is allowed to do with the property. This can include restrictions such as making alterations, keeping pets, or running a business from home.
If you need a mortgage to purchase the freehold, these restrictions could be an issue, as some lenders may hesitate if the covenants affect the property's future saleability.
Clarify the Ownership Structure (for Collective Purchases)
When buying the freehold collectively, you must name a nominee purchaser. Usually, you’ll set up a company for this, which then becomes the landlord and manages the building. Your solicitor should explain this process to you.
Liaise with Mortgage Lenders
As purchasing the freehold can impact the value of the property, your lender will need to be informed. Your solicitor will be able to speak directly with your mortgage provider, keeping them up to date.
Communicate at Key Stages
Your solicitor should keep in touch with you at important points throughout the process. This is particularly the case if any issues arise that need resolving or if your signature is required on key documents.
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Find an Experienced Conveyancing Solicitor Today
Compare My Move connects you with up to 6 licensed conveyancers operating in your local area. Simply fill out our conveyancing comparison form to receive quotes and save up to 70% on your conveyancing fees.
To join our network, all partners must pass our strict verification process. For conveyancers, this includes being regulated by one of the following regulatory bodies:
Solicitors Regulation Authority (SRA)
Council for Licensed Conveyancers (CLC)
Law Society of Scotland (LSS)
Law Society of Northern Ireland (LSNI)
Chartered Institute of Legal Executives (CILEX)
FAQs
Can the Freeholder Refuse to Sell to Me?
No, the freeholder cannot refuse to sell to you - if you are eligible to purchase. They can reject your offer to purchase though if they are unsatisfied with the terms proposed including the price offered.
If this happens, your solicitor may be able to help you apply to First Tier Tribunal (in England) or the Leasehold Valuation Tribunal (in Wales) to resolve the matter.
Can the Freeholder Sell the Freehold Without Notifying Me?
No, a freeholder can't just sell the freehold without notifying you - if you and any other leaseholders qualify. If you meet the eligibility criteria, the freeholder is legally required to inform you, via section 5A notice, before selling. This gives you and other leaseholders the chance to buy the freehold first.
What Is the Cost of a Solicitor for Buying a Freehold?
When purchasing a freehold in the UK, the average cost of hiring a conveyancing solicitor is around £1,743. In addition to this, you’ll typically need to cover the freeholder’s solicitor fees, which average about £814. These costs are calculated based on the average UK property price of £292,000.
There are also disbursements such as:
- Bankruptcy check: £6
- Land Registry transfer fee: £150 (or £330 by post)
