Freehold Purchase Solicitors in Stockport
Expert Legal Advice for the Sale or Purchase of a Freehold Property
Leasehold Enfranchisement
Our Freehold Purchase Solicitors are here to guide you through every step if you are planning to buy the freehold of your leasehold house.
Under the Leasehold Reform Act 1967, most leaseholders of houses in England and Wales have a legal right to purchase the freehold of their property, also known as leasehold enfranchisement. While this can be a valuable way to secure long-term ownership and avoid ground rent, the legal process can be technical and must meet strict criteria.
Buying a freehold is not the same as purchasing a house. Specific qualifying conditions must be met, and the statutory process must be followed carefully to ensure your rights are protected. That’s why it’s important to seek legal advice from a solicitor experienced in this area of property law.
We also assist freeholders who wish to sell the freehold title of a house to their leaseholder. If you’ve received a request from a leaseholder or are considering selling your interest, we can help you understand your legal position and manage the transaction smoothly.
At Mounteney Solicitors, our team of Freehold Purchase Solicitors, led by Head of Residential Property Amanda Neill, have the skills and expertise to guide you through the freehold acquisition process. While freehold titles are generally more desirable than leasehold titles due to their simplicity and potential to render the property more valuable, we understand that complicated issues can arise.
Contact our Freehold Purchase Solicitors today for expert advice on buying or selling a freehold and take the next step with clarity and confidence.
Please note that this product refers to houses only. The purchase of freeholds for flats raises much more complicated issues beyond the scope of this product. However, if you wish to enquire about a freehold flat purchase quote, we would be more than happy to discuss your options for the conveyancing work after you have independently negotiated and agreed with your freehold owner.
How to buy the freehold
If you’re interested in buying the freehold on your property, you must first approach the current freeholder to ask if they are prepared to sell and to discuss the cost. If the freeholder refuses a voluntary sale of the freehold, you may still be able to purchase the freehold under enfranchisement.
The right to enfranchisement depends on the following conditions:
- The property must be a house (some commercial properties, like shops with a flat above, may also qualify)
- The lease must be for a term of more than 21 years
Should you meet these conditions, our legal representatives have the knowledge and capability to use the relevant legislation to serve a legal notice on the freeholder to acquire the freehold.
The process of purchasing the freehold does not end once the terms of the sale are agreed. You must then legally record the land transfer with HM Land Registry and obtain a new title. There may also be other covenants to consider regarding the building, extensions and improvements. It is also crucial to understand that if you’re looking to buy the freehold on your property, you will have to pay your own conveyancing fees, and depending on the terms of the leasehold, the freeholder may require you to cover their legal costs, too.
It is essential to seek specialist legal advice if you’re considering purchasing the freehold on your property to ensure you complete all the required steps and are aware of any restrictions and whether they can be altered or lifted.
Why Buy Your Freehold? Why buying your freehold is important
Owning the freehold of your home means full and permanent control over both the building and the land it occupies, without the restrictions that often come with leasehold ownership. It removes the need to pay ground rent, seek permission for alterations, or worry about the lease running down and affecting the value of your property. For example, if you plan to build an extension, being the freeholder allows you to proceed without needing a landlord’s approval (though planning permission would still apply). It also makes future sales or remortgaging easier, as buyers and lenders tend to favour freehold properties. In short, buying your freehold gives you clarity, certainty and full autonomy over your home, making it a worthwhile step for many homeowners.
The Freehold Purchase Process
To purchase the freehold to a property, the typical enfranchisement process is detailed and must follow specific steps to ensure compliance with legal requirements.
The steps involved in the enfranchisement process include:
- Serving the tenant’s notice: The leaseholder serves a tenant notice on the freeholder, which does not need to include a proposed price but must follow the prescribed format.
- Responding to the notice: The freeholder must respond within two months with a notice of reply, agreeing to the terms set by the leaseholder or disputing it with their reasons.
- Valuation and price agreement: The price is negotiated using a statutory formula. Disputes over the price can be referred to the First-tier Tribunal.
- Completion of sale: Once the price is agreed upon, the sale must be completed within four weeks. The freeholder should ensure all financial and legal documents are prepared for a smooth transfer.
If you are a freeholder and have been served a tenant’s notice, you can negotiate the valuation and proceed with the sale, collecting any necessary deposits.
However, if you wish to, you can also dispute the claim, serving a counter-notice within two months with reasons for the dispute.
Given the complexity of the process, we strongly recommend seeking professional legal and valuation advice to ensure compliance and a fair sale process; this ensures both parties understand their rights and responsibilities and that the transaction is handled efficiently.
What are the benefits of buying the freehold?
Buying the freehold of your property can be a significant investment offering numerous advantages, including:
- Ownership of the whole property: Owning the freehold means that the building and the land it sits on belong entirely to you, offering greater security and control over your property.
- Elimination of ground rent: One of the primary reasons for buying the freehold is to avoid paying ground rent. Whilst ground rent for older properties can be relatively low, it can be much higher for newer properties, impacting affordability and resale value.
- Freedom from leasehold restrictions: If your home is under leasehold, you will likely face restrictions on modifying your property. Although you must still adhere to planning permissions and building regulations on freehold property, you will have more freedom to make alterations.
- Long-term financial benefits: Although buying a freehold won’t necessarily increase a property’s market value, it can make it more attractive to potential buyers who don’t wish to face the ongoing costs or restrictions of a leasehold.
- Improved marketability: If you have a short lease term on your mortgage, it can be challenging if you’re attempting to sell or remortgage it. Owning the freehold eliminates these issues altogether.
- Protection against escalating costs: In the case of new-builds especially, leasehold properties are often subject to dramatically increasing ground rents over time, sometimes making properties unaffordable. Freehold ownership protects you from these escalating costs.
- Avoiding lease expiration issues: Once the fixed term on a leasehold has expired, the property reverts to the landlord, significantly diminishing the value of your property as the lease term shortens. With freehold ownership, you will be the property’s landlord and can enjoy full ownership.
As a homeowner, the long-term benefits make the purchase a wise choice. Buying the freehold on your property will allow you greater control, financial predictability and peace of mind, making the initial investment well worth the costs.
Money Matters - How much will it cost to buy the freehold?
This service is for taking instructions, making contact with the landlord, producing the transfer documents, seeing to their proper execution, and applying to register them at HM Land Registry. On request it can include the merger and extinguishment of the registered, uncharged leasehold title in the registration of the freehold transfer – although if the leasehold title is charged or unregistered, additional complexities arise at additional cost.
There are also a number of supplementary fees you may need to pay, which could include:
– HM Land Registry fee (£40)
– Negotiation of price (£175 + VAT)
– Payment of rent arrears (£100 + VAT)
– Unrepresented seller (£100 + VAT)
– Dealing with part titles (£150 + VAT – does not include production of plan)
– Discharge charge over leasehold (£150 + VAT)
– Transferring charge from leasehold to freehold (£275 + VAT)
Our basic service does not include (i) negotiation; (ii) title certification such as reporting on covenants, easements or ground rents; (iii) any lending security work (see below) (iv) producing any plan required.
Basic Service (£700)
For our Basic Service, we charge £700 + VAT = £840, plus the Land Registry registration fee, usually £40.
Add on - Negotiation of Price (£175)
For our Negotiation of Price service (we do not advise), we charge £175 + VAT = £210
Add on - Payment of Arrears (£100)
For our Payment of Arrears service, we charge £100 + VAT = £120
Add on - Unrepresented Seller (£100)
For our service involving an unrepresented seller, we charge £100 + VAT = £120
Add on - Part Title Supplement (£150)
For our Part Title Supplement services, we charge £150 + VAT = £180
Add on - Merger of Leasehold Title (Varies)
For our Merger of Leasehold Title service, there is no further charge for uncharged leasehold. For charged leasehold:
- Discharge: £125 + VAT = £150
- Transferred to freehold: £225 + VAT = £270
- Lending security work (i.e. raising a mortgage): £450 + VAT = £540
Your supplier is SRA-regulated Mounteney Solicitors, that charges VAT some customers may be able to reclaim.
There is more info about our fees here
If you have any questions, require any further information, or would like to engage us on the T&Cs linked Our Terms in the footer below, please don’t hesitate to Contact Us.
Frequently Asked Questions About Freehold Purchases
Should I merge leasehold and freehold titles?
If you’ve purchased the freehold of your leasehold house, it is usually beneficial to merge the two titles into a single freehold title. This simplifies ownership, removes unnecessary administrative layers, and makes it easier to sell or remortgage the property in future. By merging the titles, you formally extinguish the lease, and the property becomes purely freehold, which is generally more attractive to buyers and lenders.
However, in some cases, particularly where the leasehold title is subject to an existing mortgage or shared ownership arrangement, it may be advisable to retain both titles temporarily. If there is a mortgage on the leasehold, for example, you will likely need your lender’s consent to merge, and this can delay or complicate the process.
Our freehold purchase solicitors provide clear, practical advice on whether merging is the right choice for you. If appropriate, we’ll handle the application to HM Land Registry to merge the titles as part of your freehold acquisition, ensuring the legal record reflects your full ownership.
Do I need a solicitor to buy the freehold?
While it is legally possible to handle a freehold purchase yourself, it is strongly advised to instruct a qualified solicitor due to the technical nature of leasehold enfranchisement. The process involves strict legal requirements, formal notices, statutory deadlines, and negotiation of legal rights and obligations, all of which must be handled with care to avoid costly delays or disputes. A solicitor ensures the notice is correctly served, manages communication with the freeholder’s solicitor, negotiates the transfer terms, and oversees completion and registration with HM Land Registry. At Mounteney Solicitors, our experienced team handles the entire process for you, offering peace of mind that your rights are protected and that the transaction is legally watertight.
Can I buy the freehold of my building?
Whether you can buy the freehold of your building depends on the type of property you own and your eligibility under leasehold reform legislation. If you own a leasehold house, you may have the individual legal right to purchase the freehold under the Leasehold Reform Act 1967, provided you meet certain criteria, such as holding a lease longer than 21 years and having owned the property for at least two years. However, if your property is a flat, the process is different, you would usually need to act collectively with other leaseholders in the building to acquire the freehold through a process called collective enfranchisement under the Leasehold Reform, Housing and Urban Development Act 1993. Mounteney Solicitors can advise you on your rights and next steps, whether you own a house or are exploring a group purchase for a block of flats.
How long does the process of buying the freehold take?
The process of buying a freehold can be complex and often time-consuming. Our team is well-equipped to get things done for you to ensure a successful transaction. Following the client retention process, we will begin working on your case promptly; this involves several hours of coordinated work with third parties, which can take several weeks.
Once we have completed the necessary work, we will submit your application to the Land Registry for registration. The processing time at the Land Registry varies widely, depending on their workload. Some applications are processed quickly, while others may take several months. However, the Land Registry processes applications in the order they are received, so delays should not affect the priority of your application relative to other matters on the title.
Am I Eligible to Buy My Freehold?
To qualify for the leaseholders right to buy the freehold of your leasehold house, certain conditions must be met under the Leasehold Reform Act 1967. Firstly, the property must be a house, not a flat or maisonette. Secondly, your lease must have originally been granted for more than 21 years, even if fewer years remain today. You must also have owned the property for at least two years before making a formal claim. In some cases, mixed use properties such as a shop with a flat above may also qualify. Our team can quickly confirm your eligibility and guide you through the next steps.
What is leasehold enfranchisement?
Enfranchisement is the leaseholder’s legal right to purchase the freehold of their house under the Leasehold Reform Act 1967 and amended by the Commonhold and Leasehold Reform Act 2002. The leaseholder may take full ownership of the property under certain conditions, ending the lease agreement. For the leaseholder to qualify, they must meet the criteria set out above.
Contact our Freehold Purchase Solicitors
If you’re considering buying or selling the freehold on your property and need expert legal assistance, contact our Freehold Purchase Solicitors today. Our dedicated team is available to offer comprehensive support throughout the process, ensuring a straightforward and successful purchase.
Our Solicitors in Stockport have offices in Bramhall, Cheadle and Heald Green. We serve clients throughout the Stockport and Manchester area, including Altrincham, Hazel Grove, Poynton, Wilmslow and Sale, so we are easily accessible and ready to assist you with all your legal needs.
Get in touch today for personalised legal advice and to learn more about how we can help. We eagerly await your call.
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