Is it possible to buy the freehold of a leasehold home?
It is possible to buy either a share of the freehold at the time of purchase or buy the freehold as a group of leaseholders in the same building. There’s also an option called Right to Manage. Find out more about the options below, or read our handy guide which explains all about buying the freehold of a flat or house.
Purchasing a share of the freehold
A share of the freehold is sometimes included in the purchase of a flat. There are usually two ways in which you can purchase a share of the freehold, and your conveyancer will advise which is best for your circumstances.
Purchasing the freehold as a group of leaseholders
The Leasehold Reform Housing and Urban Development Act 1993 allows a group of leaseholders to apply to the freeholder of their building to purchase the freehold together. The benefit of doing this is that you can control your own lease, extend it on your terms and manage the building.
The biggest potential disadvantage is around the number of parties involved, and therefore the greater chance of disagreements or tensions arising with your fellow leaseholders during negotiations.
Right to Manage
There’s another option called Right to Manage. You can apply for this for free alongside the other leaseholders, allowing you to gain more control over your building. You still have to pay ground rent to the freeholder, but you can control service charges, maintenance costs, buildings insurance etc.