Freehold Purchase of Leasehold Property

What is a Freehold Purchase?

A freehold purchase refers to the acquisition of full ownership rights to a property, including both the building and the land it sits on. This is in contrast to leasehold ownership, where you hold the right to occupy and use the property for a fixed term, but not the land itself.

When you purchase the freehold title to your home, you are obtaining a registrable legal interest that gives you outright control and responsibility for the property. This includes maintaining the structure, making decisions about future alterations, and managing any shared obligations with neighbouring properties.

If you are considering buying the freehold of your house, or collectively purchasing it with other leaseholders in a building, it is essential that you understand your rights, the legal implications, and the steps involved.

Our expert property solicitors in Bolton, Bury, and Stockport are here to support you every step of the way and ensure the process is smooth and secure.

Purchasing a Freehold

Under the Leasehold Reform Act, leaseholders have a legal right to buy the freehold in certain circumstances. If you are a leaseholder of a house, you can usually do this individually. For flats, it is a more complex process.

In blocks with only two flats, both leaseholders must participate to buy the freehold. For larger buildings, a group of leaseholders, typically at least 50% of the qualifying flats in the building, can come together to buy a share of the freehold through what’s called collective enfranchisement.

To qualify:

• Each leaseholder must have at least a 21 year long lease.
• The building must contain at least two flats.
• Non-residential parts of the building must not exceed 25%.

Process for Buying the Freehold

Form a Group (If needed)

For flats, you will likely need to rally fellow leaseholders in the building. You may need to set up a company to act as the nominee purchaser. This is the legal entity that will own the freehold on behalf of all leaseholders.

Get Professional Advice

It is advisable to engage a solicitor experienced in leasehold purchases, and a surveyor for your valuation. Professional legal and valuation support is critical to help you through this complex process and avoid disputes.

Serve the Initial Notice

Your solicitor will prepare and serve a formal notice on the freeholder, stating your intention to purchase and naming the nominee purchaser. This starts the legal clock.

Valuation and Negotiation

Your surveyor will estimate the premium, which is the amount you’ll pay to buy the freehold. This considers factors like the length of the lease, ground rent, and property value. You should expect to pay valuation fees and possibly the freeholder’s legal fees, as required by law.

Negotiations may follow. If you cannot agree on the price, the case can be taken to a First-tier Tribunal, which will determine a fair amount.

Legal Documentation and Completion

Once terms are agreed, your solicitor will handle the legal transfer. This includes:

• Drafting the transfer deed
• Ensuring proper execution
• Registering the freehold with HM Land Registry

Benefits of Owning the Freehold

Owning your freehold gives you far more control over your home and potentially saves you money in the long run. As a freeholder:

• You won’t pay ground rent.
• You are not tied to a lease that can run out.
• You have full control over the maintenance and improvement of your property.
• You can more easily sell or re-mortgage the property, as lenders often prefer freehold homes.

In short, owning the freehold gives you more certainty, autonomy, and long-term value.

How Long Does a Freehold Purchase Take?

On average, the process of purchasing a freehold title takes between 12 to 16 weeks, though the exact timeframe can vary depending on several factors:

• How quickly both parties respond
• Whether there are issues uncovered during title review
• Delays with the Land Registry or mortgage providers (if applicable)

We aim to keep the process moving efficiently by maintaining clear communication with all parties and proactively managing any complications that arise.

If you are part of a group of leaseholders buying the freehold collectively, the timescale can be longer due to coordination between multiple buyers.

Speak to AFG Law about a Freehold Purchase

If you are buying the freehold title to your own home, please contact our Bolton, Bury and Stockport solicitors to discuss the details and our expert solicitors will guide you through the process.

To contact one of the residential team, we can be contacted via email at residentialproperty@afglaw.co.uk, or to speak to one of our experts, please call 01204 920 107.