TL;DR: Converting a UK leasehold to freehold means buying out the freehold interest. For a leasehold house, the route is "enfranchisement" under the Leasehold Reform Act 1967: the price is calculated by a statutory valuation formula based on ground rent, term remaining, and the property value. For a leasehold flat, the route is "collective enfranchisement" under the Leasehold Reform, Housing and Urban Development Act 1993: a qualifying group of leaseholders buys the freehold of the building together. Typical costs include the premium paid to the freeholder (this is the bulk; can range from a few thousand pounds for a long-leased house with low ground rent to tens or hundreds of thousands for a flat with a short lease or expensive ground rent), the leaseholder's solicitor and surveyor fees (1,500 to 4,000 pounds combined for a house, more for a flat), and the freeholder's reasonable costs (the leaseholder pays these under the statutory regime). The Leasehold and Freehold Reform Act 2024 makes several reforms that change the maths going forward, though some provisions await commencement orders.
Last reviewed May 2026
"Converting leasehold to freehold" is the everyday phrase for buying out the freehold interest in a leasehold property. The legal term is "enfranchisement", and the route depends on whether the property is a house or a flat. The cost depends on several factors, the most important being the value of the property, the ground rent, the time remaining on the lease, and whether the parties can agree the price by negotiation or have to go to the First-tier Tribunal.
This guide explains the two enfranchisement routes (houses and flats), the statutory valuation formula and how it works, the leaseholder's other costs (solicitor, surveyor, freeholder's reasonable costs), the alternative of a lease extension if full enfranchisement is too expensive, and the reform programme under the Leasehold and Freehold Reform Act 2024.
Houses: enfranchisement under the 1967 Act
The Leasehold Reform Act 1967 gives the leaseholder of a house the statutory right to buy the freehold (or extend the lease by 50 years), provided certain conditions are met. The qualifying conditions historically included a residence test and various rateable value thresholds, but the Commonhold and Leasehold Reform Act 2002 removed the residence test for most cases, and the 1993 amendments simplified the qualification rules.
For most leasehold houses with more than 21 years on the original lease, the leaseholder qualifies for enfranchisement. The leaseholder serves a "notice of claim" on the freeholder under section 8 of the 1967 Act, specifying the proposed premium. The freeholder responds with a counter-notice within two months. Negotiations then run for two months, after which either party can apply to the First-tier Tribunal (Property Chamber) for a determination if no agreement is reached.
The valuation formula for houses depends on the rateable value at the original lease grant: low-value houses use the "section 9(1) basis" (which is more favourable to the leaseholder, with the freeholder receiving roughly the site value); higher-value houses use the "section 9(1A) basis" (which adds a "marriage value" element when the lease has less than 80 years remaining, making the enfranchisement more expensive).
Flats: collective enfranchisement under the 1993 Act
Leaseholders of flats do not have an individual right to buy the freehold of the building they live in. Instead, the 1993 Act (Leasehold Reform, Housing and Urban Development Act) gives qualifying leaseholders a collective right to buy the freehold of the building together.
The qualifying conditions are: the building must contain at least two flats (most blocks of flats qualify); at least two-thirds of the flats must be held by qualifying tenants (long leaseholders with leases originally over 21 years); and at least half of the qualifying tenants must participate in the collective claim.
The participating leaseholders form a "nominee purchaser" (typically a company set up for the purpose) which buys the freehold from the freeholder. The leaseholders contribute to the cost in proportion to the value of their flats. After enfranchisement, the leaseholders collectively control the building through the nominee purchaser, although each individual flat remains leasehold (with the nominee purchaser as freeholder).
Individual leaseholders of flats who do not want collective enfranchisement (or who cannot reach the participation threshold) can instead extend their own lease by 90 years at a peppercorn rent under the same 1993 Act.
The valuation formula
The statutory premium for enfranchisement has three main components: the value of the term (the freeholder's right to receive ground rent during the remaining lease term); the value of the reversion (the freeholder's right to receive the property back at the end of the lease); and (where the lease has less than 80 years remaining) the "marriage value" representing the increase in value when the leasehold and freehold are merged.
The valuation uses statutory assumptions including the deferment rate (the rate at which future receipts are discounted to present value) and the capitalisation rate (the rate at which ground rent receipts are capitalised). The deferment rates are set by tribunal precedent: 5 percent for houses and 4.75 percent for flats are the current benchmarks under the Sportelli line of cases.
Marriage value is the most significant single factor in determining whether enfranchisement is cheap or expensive. For a lease with more than 80 years remaining, marriage value is zero and the premium is much lower. For a lease with much less than 80 years, marriage value typically doubles or triples the premium. The "80-year cliff" makes enfranchisement urgent for leaseholders whose lease is approaching 80 years.
The Leasehold and Freehold Reform Act 2024 makes significant changes to the valuation, including abolishing marriage value, removing the requirement to pay capitalised ground rent above 0.1 percent of the freehold value, and standardising deferment rates. Some provisions await commencement orders before they take effect.
The typical total cost
For a leasehold house with a long lease (over 80 years remaining) and a modest ground rent (under 250 pounds a year), the premium is often a few thousand pounds. Add solicitor fees (800 to 1,500 pounds plus VAT for the leaseholder), surveyor fees (500 to 1,500 pounds plus VAT), and the freeholder's reasonable costs (commonly 800 to 2,000 pounds plus VAT under the statute). Total: typically 4,000 to 8,000 pounds plus VAT, of which the premium is around half.
For a leasehold house with a short lease (under 80 years) and high ground rent, the premium can be tens of thousands of pounds due to marriage value and capitalised ground rent. The other costs are similar to the long-lease case.
For a flat under collective enfranchisement, the leaseholder's share of the total cost depends on how many leaseholders participate. The total premium for the building can run from tens of thousands (for a block with long leases and low ground rents) to hundreds of thousands or more (for a high-value central London block with short leases). Solicitor and surveyor fees for collective enfranchisement are higher because the process is more complex.
The leaseholder also pays the freeholder's "reasonable costs" under the statute (section 9(4) of the 1967 Act for houses; section 33 of the 1993 Act for flats). These cover the freeholder's solicitor and valuer for the statutory process. The reasonableness can be challenged at the tribunal.
The lease extension alternative
Where full enfranchisement is too expensive (especially for flats in collective enfranchisement where not enough leaseholders participate), the alternative is to extend the lease. The 1993 Act gives flat leaseholders the right to add 90 years to the lease at a peppercorn rent in exchange for a statutory premium.
Lease extension uses a similar valuation formula to full enfranchisement, with the same 80-year cliff for marriage value. The premium for a lease extension is typically lower than collective enfranchisement (because the leaseholder is not buying the freehold), but the leaseholder's other costs are similar (solicitor, surveyor, freeholder's reasonable costs).
For a house, the 1967 Act gives a 50-year lease extension as an alternative to buying the freehold, but this is rarely used now because the 1993 Act amendments gave house leaseholders the right to a 90-year extension on similar terms to flats.
The Leasehold and Freehold Reform Act 2024 simplifies and extends lease extension rights: the new standard term is 990 years for both houses and flats, and the residence test has been removed.
The reform under the 2024 Act
The Leasehold and Freehold Reform Act 2024 makes several changes to the enfranchisement and lease extension regime. The headline changes include: a new standard 990-year lease extension term; abolition of marriage value in the valuation; a cap on the ground rent assumed in the valuation (no more than 0.1 percent of the freehold value); removal of the requirement that the leaseholder must have owned the lease for two years before claiming; and changes to the rules on participation thresholds for collective enfranchisement.
Several of the 2024 Act's provisions require commencement orders before they take effect. The government has indicated that the major valuation changes will be in force from 2026, but the exact timetable depends on the secondary legislation. Leaseholders considering enfranchisement should check the current commencement position with their solicitor before deciding when to serve the notice.
The 2024 Act is the most significant reform to leasehold enfranchisement since the 1993 Act and is expected to reduce premiums significantly for leases under 80 years. The government has also announced consultation on banning new leasehold houses, although that is a separate workstream.
How we verified this
The enfranchisement and lease extension rules reflect the Leasehold Reform Act 1967, the Leasehold Reform, Housing and Urban Development Act 1993, and the amendments under the Commonhold and Leasehold Reform Act 2002. The reform provisions reflect the Leasehold and Freehold Reform Act 2024, with the caveat that some provisions await commencement orders. Valuation principles including deferment rates and capitalisation rates reflect the tribunal decisions in the Sportelli line of cases and the practical guidance from RICS valuers. No specific solicitor names, surveyor names, or premium figures have been invented; figures are stated as ranges and the article points to the statutory framework for the authoritative position.
Disclaimer: This article is general information about UK leasehold enfranchisement and the cost of converting leasehold to freehold. It is not legal, valuation or tax advice. The right route and the right premium for any individual case depend on the lease terms, the property value, the ground rent, the remaining term, and the current state of the law (especially with the 2024 Act reforms in transition). Leaseholders considering enfranchisement should take advice from a solicitor specialising in leasehold enfranchisement and an RICS-registered enfranchisement valuer.
Frequently asked questions
How much does it cost to convert a leasehold house to freehold?
The total cost is the premium paid to the freeholder plus the leaseholder's own solicitor and surveyor fees (typically 1,500 to 3,000 pounds combined) plus the freeholder's reasonable statutory costs (typically 800 to 2,000 pounds). For a long-leased house with low ground rent, the premium itself can be a few thousand pounds. For a short-leased house with high ground rent, the premium can be tens of thousands.
How much does it cost to buy the freehold of a flat?
Flats use collective enfranchisement, where qualifying leaseholders buy the freehold together. Total premium for the building can range from tens of thousands to hundreds of thousands of pounds, divided among the participating leaseholders. Solicitor and surveyor fees are higher than for a house because the process is more complex.
Is it better to extend the lease or buy the freehold?
For a flat, lease extension is the individual route; collective enfranchisement requires at least half the qualifying tenants to participate. For a house, buying the freehold is usually cheaper than a long lease extension and gives full ownership. The Leasehold and Freehold Reform Act 2024 makes lease extension more attractive by introducing a 990-year standard term.
What is marriage value in leasehold enfranchisement?
Marriage value is the increase in value of the property when the leasehold and freehold are combined into single ownership. It applies in the statutory valuation when the lease has less than 80 years remaining, and typically doubles or triples the premium. The Leasehold and Freehold Reform Act 2024 abolishes marriage value once the relevant commencement order is in force.
How long does it take to convert leasehold to freehold?
Typically 6 to 12 months from serving the notice of claim to completion, for a straightforward case. If the parties cannot agree the premium and the case goes to the First-tier Tribunal, the process can take 18 months or more. Collective enfranchisement of a flat building is usually longer than a single house.
