Freehold Purchase Calculator
Our freehold calculator provides an instant estimation of the value of your share of freehold.
Calculate the value of your freehold
To calculate the value of your share of freehold, and understand how much your cost to purchase will be, you will need to enter specific details into our above freehold calculator tool.
We’ll need the following details:
- The long lease value of your property
- The number of years remaining on the lease
- The annual ground rent
Once our calculator has provided insight into your freehold valuation using our freehold calculator, those looking to purchase their freehold can contact us for a professional appraisal from one of our experts.
Our calculator will give you an approximate range estimate of the premium for lease extensions, or share of freehold purchase (through a collective enfranchisement process). It is based on available data and does not take into account specific factors that may alter the premium.
- Please note that this calculator is not intended to be used to buy the freehold of a leasehold flat with a lease of below 80 years remaining. If you have a lease with under 80 years remaining, please get in touch.
- It cannot give you the actual cost of a lease extension or acquisition, only a very rough valuation. In addition to your premium, there are both your own and your freeholder’s professional fees, and also potentially Stamp Duty (though this isn’t normally applicable). Speak to an appropriate project manager (such as The Freehold Collective) to get a better understanding of these fees.
- It doesn’t provide a definitive figure, just a rough estimate in the region of the likely settlement premium.
- The calculator estimate shouldn’t be treated as a professional valuation and is not to be interpreted as professional advice. You should always ensure to get a valuation from chartered surveyors as part of a freehold acquisition.
- You should not take any action based on the calculator estimate, including in courts or in a leasehold valuation tribunal.
- To the maximum extent permitted by law, The Freehold Collective shall not be liable for any loss, injury, claim, liability or damage of any kind resulting from, arising out of or in any way related to reliance on the estimate produced by this calculator.
Purchase cost factors included in your freehold estimation
Alongside the size and location of your block or building, in order for you to purchase a share of freehold on an apartment there are many factors that determine what price it will cost. The number of flats in a certain building, length left before each lease is up, as well as any value added after purchasing the land all play into how much money freeholders will need to spend.
Additional fees to take into account include:
- Marriage Value: Freeholders are legally entitled to 50% of the increase in value of the lease when marriage value is taken into consideration on a flat. The flat’s value will rise once the freehold has been purchased and the lease extended.
- Your Own Professional Fees
- Your Landlord’s Professional Fees
Is it worth buying the freehold?
There are many beneficial reasons to purchase the freehold of a leasehold flat. Notable reasons include:
- Purchasing a share of your freehold can increase the value of your flat considerably
- When they purchase the freehold, freeholders take over responsibility for the maintenance and management of the building, which could reduce costly service charges and improve overall contractor service and building upkeep
- When the freehold is purchased, you can extend the lease up to 999 years without having to pay an additional premium. Freehold owners can also eradicate ground rents for themselves, and collect existing ground rent from other flats.
How to purchase the freehold?
To purchase your freehold, the best thing to do is to approach our expert team at The Freehold Collective. Our own tried and tested process ensures that:
- You are supported through every stage of the acquisition process
- You understand the true value of your acquisition
- You avoid taking unnecessary risks
- You pay a fair purchase price
To give an overall idea of the process generally at least half of all other leaseholders in the same block of flats must be willing to come together to purchase the freehold. TFC can help you get other leaseholders together by negotiating with leaseholders at an individual level to form a collective group who are filled with the knowledge and confidence necessary to successfully acquire their freehold.
Once formed, the collective will need to approach the landlord or overall leaseholder to sell the freehold.
If there is no such refusal, the acquisition process can begin. If the process is successful, the collective group of leaseholders will take ownership of the building’s freehold.
Each leaseholder will then receive a share of the freehold and a long lease (around 999 years with zero ground rent) from the leaseholder owned company which now owns the freehold.