Most people buying a house expect to own the building and the land it stands on outright. However, there are still homeowners across England and Wales who own their house on a leasehold basis.
If you own a leasehold house, you have the right to occupy the property for the period specified in your lease, but somebody else owns the freehold. Depending on the terms of your lease, you may also be paying ground rent, pay a service charge or require the freeholder’s consent for certain changes to the property.
For qualifying homeowners, there may be a statutory right to buy the freehold. This process is known as leasehold enfranchisement.
At AFG Law, our Residential Property team can advise leasehold homeowners about buying their freehold, extending their lease and the legal process involved in changing the ownership of their property.
What Does Buying the Freehold Mean?
When you buy a leasehold house, you acquire a lease giving you the right to occupy the property for a particular number of years. The freeholder retains the superior legal interest in the land. Buying the freehold means acquiring that superior interest.
For the owner of a house, this is different from buying a share or a share of the freehold, terminology more commonly associated with properties where several leaseholders collectively own a building. With a qualifying house, the aim will generally be to acquire the freehold interest in the house and its relevant premises.
Once completed, this can give the homeowner significantly greater control over their property.
Do I Have the Right to Buy My Freehold?
The statutory right for qualifying leaseholders of houses to purchase their freehold principally comes from the Leasehold Reform Act 1967. Not every leaseholder or property automatically qualifies.
Broadly, the legislation applies to houses held under certain long tenancies. A long tenancy will commonly be one originally granted for a term exceeding 21 years, although the legislation contains detailed rules and exceptions.
The property must also qualify as a “house” for the purposes of the legislation and the leaseholder will need to satisfy the applicable requirements. The rules can become complicated, particularly with unusual leases or properties, so the lease and title should be reviewed before starting a claim.
Do I Still Have to Own the House for Two Years?
You are no longer required to own the property for two years before purchasing the leasehold. This is an important recent change. Historically, a leaseholder generally had to own their house for at least two years before they could exercise the statutory right to purchase the freehold.
That requirement was removed from 31 January 2025 as part of the implementation of the Leasehold and Freehold Reform Act 2024. A qualifying leaseholder can therefore potentially begin the statutory process without waiting two years after purchasing the property.
This is particularly useful for someone buying a leasehold house with the intention of acquiring the freehold relatively soon afterwards.
Why Would I Want to Buy the Freehold?
There are several reasons a homeowner might consider acquiring the freehold. One of the most obvious is greater control.
A lease is a contract and can contain restrictions on what you can do with your home. Depending on its wording, you may need the freeholder’s consent for alterations or other changes. You may also be required to pay rent to the freeholder or make other payments under the lease.
Buying the freehold can remove many of the issues associated with having a separate landlord and leaseholder relationship, although homeowners should understand exactly what rights and obligations will remain following completion.
Will I Still Have to Pay Ground Rent?
One attraction of buying the freehold is bringing the landlord and tenant relationship to an end.
If you currently make payments under the lease because you are paying ground rent, acquiring the freehold will ordinarily mean you are no longer paying ground rent to a separate freeholder in respect of that leasehold interest.
However, your solicitor should check the title carefully to identify any other payments, covenants or estate arrangements that may continue after the freehold is acquired.
Buying a freehold does not necessarily mean that every property-related charge disappears.
What About Service Charges?
This is another area where homeowners need to look carefully at their particular property.
Some owners of leasehold houses pay a service charge towards the maintenance of communal areas, private roads, landscaping, drainage or other shared facilities. Buying the freehold does not necessarily remove those obligations.
For example, a house on a private estate may remain subject to estate management charges after the freehold has been acquired. There may be a management company responsible for communal areas, and homeowners could still be required to contribute towards those costs.
Your solicitor can review the title and explain which service charges or estate charges, if any, are expected to continue.
How Much Does It Cost to Buy the Freehold?
There is no single fixed price for buying a freehold. The amount payable for the freehold is calculated using the relevant statutory valuation rules where the statutory procedure is followed. Factors can include the terms of the existing lease, its remaining length, the ground rent and other valuation considerations.
The price should not simply be confused with what the freehold might sell for on the open market as an ordinary property interest. Statutory enfranchisement has its own valuation framework.
The Leasehold and Freehold Reform Act 2024 provides for further changes to the way enfranchisement premiums are calculated, but implementation of the new valuation method is still ongoing. As of August 2026, the Government is consulting on valuation rates required for those reforms.
Professional valuation advice may therefore be required before or during the claim.
What Other Costs Should I Consider?
The premium for the freehold is not the only cost involved. You should also budget for your own legal costs and potentially valuation fees.
The rules governing responsibility for costs are themselves affected by the ongoing leasehold reforms, so it is important to obtain current advice rather than relying on information about older enfranchisement claims. Your solicitor can explain the likely costs based on the procedure applying when your claim is made.
How Does the Process Work?
The precise process will depend on whether you are using the statutory procedure or negotiating voluntarily with the freeholder. Under the statutory route, the process generally involves establishing that the property and leaseholder qualify, obtaining appropriate valuation advice and serving the necessary notice on the freeholder.
The freeholder can then respond and the terms, including the price, can be agreed or determined through the appropriate process if agreement cannot be reached.
Once matters are settled, the transfer of the freehold can be completed and the change in ownership registered at HM Land Registry. The process involves strict legal requirements, so taking advice before serving formal notices is recommended.
Can I Just Ask the Freeholder to Sell It to Me?
In some circumstances, you may be able to ask the freeholder to sell. Some homeowners negotiate a voluntary purchase directly with their freeholder rather than relying on the statutory procedure.
This can sometimes provide greater flexibility, but it also means the statutory framework may not determine the terms being offered. If your freeholder offers to sell you the freehold privately, it is worth obtaining independent valuation and legal advice before accepting.
An offer may initially appear straightforward but could contain new covenants, charges or other provisions that affect your ownership in the future.
Buying the Freehold or Extending the Lease?
If you own a leasehold house, buying the freehold may not be your only option. Depending on your circumstances, extending the lease may also be considered.
A lease extension increases the remaining term of the lease and can address issues associated with a diminishing lease term.
However, it does not give you the same ownership as purchasing the freehold. You remain a leaseholder and the freeholder continues to own the superior interest.
Whether buying the freehold or pursuing a lease extension is more appropriate will depend on the property, the lease terms, the costs involved and your longer-term plans.
Are There Exceptions to the Right to Buy?
Yes, the statutory right is subject to qualification requirements and exceptions.
Particular issues can arise with certain properties owned by bodies such as a charitable housing trust, as well as properties or tenancies falling within specific statutory exceptions.
The property must also meet the relevant requirements concerning its use for residential purposes and the nature of the tenancy. This is why it is important not to assume that every owner of a leasehold house automatically has an identical right to purchase the freehold.
A solicitor can review the lease and title before you incur significant valuation or other costs.
What If the Freeholder Does Not Respond?
The statutory process contains procedures and deadlines that both parties are expected to follow.
If the freeholder does not respond to a valid claim, this does not necessarily mean your attempt to purchase the freehold has failed. There may be further legal steps available to progress the acquisition.
Likewise, difficulties can arise where the identity or whereabouts of the freeholder is unknown.
The appropriate approach will depend on the circumstances, so legal advice should be obtained rather than allowing deadlines to pass.
What Do the Current Leasehold Reforms Mean for Houses?
Leasehold law has undergone significant change in recent years. The Leasehold and Freehold Reform Act 2024 contains measures intended to make it easier for leaseholders to buy their freeholds and extend leases. One reform already brought into force is the removal of the previous two-year ownership requirement for enfranchisement claims.
Further reforms are still being implemented. There is also separate Commonhold and Leasehold Reform legislation progressing in 2026, including proposals concerning existing ground rents and wider changes to the leasehold system.
It is therefore important to distinguish between changes that have already become law and proposals that have been announced but are not yet fully in force.
Should I Buy the Freehold of My House?
For many qualifying leasehold homeowners, acquiring the freehold can be attractive. It can provide greater control over the property, remove the need to deal with a separate freeholder on many issues and bring an end to ground rent payable under the lease.
However, it is important to understand the price and the legal consequences before proceeding.
You should also establish whether estate charges, covenants or management arrangements will remain after the purchase. Becoming a freeholder does not automatically mean that your property becomes free from every restriction or ongoing payment.
How AFG Law Can Help
At AFG Law, our Residential Property solicitors can advise homeowners considering buying the freehold of a leasehold house.
We can review your lease and title, advise on whether you may qualify for the statutory right to buy, explain the legal process and deal with the conveyancing and Land Registry requirements once terms have been agreed.
We can also advise you if you have been approached by your freeholder with an offer to sell, or if you are deciding between purchasing the freehold and extending the lease.
With significant leasehold reforms continuing to take effect, obtaining current advice is particularly important.
Contact AFG Law’s Residential Property team to discuss buying the freehold of your leasehold house and the options available to you.