Purchasing Freehold of House Under the Leasehold Reform Act 1967

Owning a leasehold house in England or Wales can feel restrictive. Your ownership is limited in time, and you may have to pay ground rent or comply with conditions set by a freeholder.

The Leasehold Reform Act 1967 gives qualifying leaseholders the legal right to buy the freehold of their house, a process known as enfranchisement.

In this guide, we explain:

• Who qualifies to buy their freehold
• How the enfranchisement process works
• What costs to expect

What Is the Leasehold Reform Act 1967?

The Leasehold Reform Act 1967 is a key piece of legislation in England and Wales that allows certain leaseholders of houses to:

• Purchase the freehold of their property (known as enfranchisement), or
• Extend their lease by 50 years (now less commonly used)

The purpose of the Act is to give leaseholders greater control, security and long-term ownership of their homes.

Who Qualifies to Buy the Freehold?

To qualify for freehold purchase under the 1967 Act, you generally need to meet the following criteria:

1. The Property Must Be a House

The Act applies to houses, not flats. A “house” can include:

• Detached and semi-detached houses
• Terraced houses
• Some maisonettes (depending on layout and structure)

2. You Must Be a Long Leaseholder

Your lease must have originally been granted for more than 21 years, including:

• Fixed-term leases over 21 years
• Leases with rights of perpetual renewal

3. Property Value Criteria (Now Largely Removed)

Previous rateable value limits have mostly been abolished, meaning most leasehold houses now qualify regardless of value.

Your Legal Right to Enfranchise

If you meet the criteria, you have a statutory right to force the freeholder to sell the freehold.

This is not optional for the landlord, provided:

• You qualify, and
• You follow the correct legal process

Valuation Methods

There are two valuation approaches under the Act:

• Original basis valuation (for lower-value properties)
• Special valuation basis (more common today and often higher in cost)

The Enfranchisement Process Step-by-Step

Buying the freehold of a leasehold house typically involves:

1. Professional Valuation

A specialist surveyor will calculate the likely premium (purchase price).

2. Serving Notice of Claim

Your solicitor serves formal legal notice on the freeholder under the 1967 Act.

3. Freeholder’s Counter-Notice

The landlord will:

• Accept your claim, or
• Challenge your eligibility (less common)

4. Negotiation

Both parties negotiate the price and terms, usually through solicitors and surveyors.

5. Tribunal (If Required)

If agreement cannot be reached, the case can go to the First-tier Tribunal (Property Chamber).

6. Completion

Once agreed, the freehold purchase completes and you become the legal freeholder.

How Much Does It Cost to Buy the Freehold?

The price (known as the premium) is based on:

• Loss of ground rent income
• The value of the reversion (future ownership)
• Marriage value (if the lease is under 80 years)

Because this calculation is complex, expert valuation advice is essential.

Additional Costs to Budget For

When purchasing your freehold, you should also consider:

• Your own legal fees
• Surveyor/valuer costs
• The freeholder’s reasonable legal and valuation fees
• Land Registry fees

Benefits of Buying Your Freehold

Enfranchisement offers significant advantages:

• ✅ Permanent ownership (no lease expiry)
• ✅ No ground rent
• ✅ Full control over your property
• ✅ Increased property value and saleability

Potential Challenges

• Cost – particularly for short leases
• Complex legal process
• Timescales – can take several months

Recent Changes to Leasehold Law

Leasehold reform in England and Wales is ongoing. Government proposals aim to:

• Simplify the enfranchisement process
• Make costs more transparent
• Reduce premiums in some cases

While the Leasehold Reform Act 1967 remains the current framework, further changes are expected.

Speak to a Leasehold Enfranchisement Solicitor

Purchasing the freehold of your house can be a highly beneficial step, but it’s important to get the right advice early.

At Martin Tolhurst Solicitors, our specialist enfranchisement team advises clients across Kent, Sussex and the South East on:

• Freehold purchase claims
• Lease extensions
• Valuation disputes

Contact us today to discuss your eligibility and get a clear understanding of costs and next steps.