How Much Does It Cost to Convert Leasehold to Freehold in the UK?

For many UK homeowners, owning a leasehold property can feel restrictive. Ground rent, service charges, landlord permissions, and a diminishing lease term often lead leaseholders to consider buying the freehold. One of the most common and important questions is: how much does it cost to convert leasehold to freehold?

The cost of converting leasehold to freehold in the UK varies widely and depends on several legal, financial, and property-specific factors. This guide provides a clear, realistic breakdown of the costs involved, explains how prices are calculated, and helps you decide whether converting to freehold is the right choice for your situation.

1. What Does Converting Leasehold to Freehold Mean?

Converting leasehold to freehold means purchasing the freehold interest from the existing freeholder (landlord). Once the transaction is completed:

• The lease is removed entirely
  
• Ground rent payments end
  
• Ownership becomes permanent
  
• You gain full control of the property and land
  

This legal process is known as leasehold enfranchisement and is protected by UK legislation.

2. Who Is Eligible to Convert Leasehold to Freehold?

In most cases, you qualify if:

• Your property is residential
  
• The original lease was longer than 21 years
  
• You have owned the lease for at least two years
  

For houses, individual leaseholders can usually buy the freehold. For flats, leaseholders typically purchase the freehold together through collective enfranchisement.

3. So, How Much Does It Cost to Convert Leasehold to Freehold?

There is no single fixed price. However, most UK leaseholders can expect total costs to fall within the range of £6,000 to £40,000 or more, depending on the property and lease terms.

The total cost is made up of several separate components, all of which should be considered carefully.

1. Freehold Purchase Price

This is the largest part of the cost and is calculated using valuation principles set out in UK law. Factors that affect the price include:

• Market value of the property
  
• Length of the remaining lease
  
• Ground rent payable
  
• Review clauses in the lease
  
• Whether the lease is below 80 years
  

Typical Price Ranges

• Lease over 90 years: £3,000 – £8,000
  
• Lease close to 80 years: £7,000 – £18,000
  
• Lease under 60 years: £20,000 – £30,000+
  

The shorter the lease, the more expensive the freehold becomes.

2. Marriage Value Explained

One of the most important cost drivers is marriage value.

If your lease has less than 80 years remaining, the law requires the leaseholder to pay marriage value. This represents the increase in property value once leasehold and freehold interests are combined.

• Marriage value is split 50/50
• Half is payable to the freeholder
• It can add many thousands of pounds to the price

This is why many property owners act before the lease drops below 80 years.

3. Valuation Fees

You will need a specialist RICS chartered surveyor experienced in leasehold enfranchisement to calculate a fair price.

Typical valuation costs:

• £600 – £1,500
• Higher for complex or high-value properties

A professional valuation protects you from overpaying and strengthens your position during negotiations.

4. Your Legal Fees

A solicitor with leasehold enfranchisement experience is essential. Legal work includes:

• Serving statutory notices
• Reviewing lease terms
• Negotiating with the freeholder
• Completing the transfer
• Registering ownership

Typical solicitor fees:

• £900 – £2,000
• More if disputes arise

5. Freeholder’s Professional Costs

Under UK law, the leaseholder must cover the freeholder’s reasonable legal and valuation fees. This does not include their negotiation or tribunal costs.

Typical cost range:

• £1,200 – £3,000

This is a common surprise cost for many leaseholders.

6. Land Registry and Administration Costs

Additional smaller costs include:

• Land Registry fees
• Notice fees
• Deed registration costs

Estimated cost:

• £100 – £300

While minor, they should still be included in your budget.

3. Estimated Total Cost Breakdown

Cost Category	Estimated Amount
Freehold price	£3,000 – £30,000+
Valuation	£600 – £1,500
Your legal fees	£900 – £2,000
Freeholder’s fees	£1,200 – £3,000
Admin & registration	£100 – £300
Total Estimated Cost	£6,000 – £40,000+

 

5. Leasehold House vs Leasehold Flat Costs

Leasehold House

• Usually simpler and cheaper
• Individual purchase
• Often £5,000 – £15,000 total

Leasehold Flat

• Purchased jointly with other leaseholders
• Costs shared between participants
• More complex valuation and legal process

While flats involve more coordination, collective enfranchisement often provides long-term savings.

Also, learn more about Why there are two types of ownership in the UK – leasehold and freehold?

6. Is Converting to Freehold Better Than Extending a Lease?

A lease extension may appear cheaper initially, but it does not offer the same benefits.

Lease Extension

• Adds years to the lease
• Ground rent may still apply
• Lease will eventually shorten again

Freehold Purchase

• Permanent ownership
• No ground rent
• Higher resale value
• Greater control

For long-term ownership, freehold conversion often provides better value.

7. How Long Does the Process Take?

Most leasehold to freehold conversions take:

• 6 to 12 months on average
• Longer if negotiations are disputed
• Tribunal involvement can extend timelines

Early preparation and expert advice help keep the process efficient.

Also, learn more about the Leasehold and Freehold Reform Bill

8. Can a Freeholder Refuse to Sell?

If you meet the legal criteria, the freeholder cannot refuse to sell the freehold. If there is disagreement over price:

• Negotiations take place
• Independent valuation evidence is used
• A tribunal can decide a fair amount

This legal protection prevents unreasonable demands.

9. Is It Worth the Cost?

For many UK homeowners, converting leasehold to freehold is a worthwhile investment. Benefits include:

• Elimination of ground rent
• No lease expiry concerns
• Improved mortgage eligibility
• Increased property value
• Full control over the property

In many cases, the cost is reflected in the higher resale price.

10. How to Keep Costs as Low as Possible

• Act before the lease drops below 80 years
• Use an experienced RICS surveyor
• Choose a solicitor specialising in enfranchisement
• Avoid informal freeholder offers without advice

Professional guidance often saves more than it costs.

Conclusion

So, how much does it cost to convert leasehold to freehold in the UK?
The total cost typically ranges from £6,000 to £40,000 or more, depending on lease length, property value, and professional fees. While the upfront expense can seem significant, freehold ownership offers long-term financial security, increased property value, and complete ownership rights.

Understanding the costs involved and acting at the right time can make converting to freehold one of the most beneficial property decisions a UK leaseholder can make.