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What is Freehold?
Before we dive into how much it costs to buy freehold, let’s first understand what it means to buy freehold. Freehold is simply the ownership of the land and the property on it, without any limitations on time. When you buy a freehold property, you become the outright owner of the land and building on it, and you have complete control over it.
In contrast, leasehold means you own the property but not the land it stands on. Instead, you have a lease for a certain number of years, typically between 99 to 125 years. At the end of this period, the property reverts back to the freeholder.
Why Buy Freehold?
There are several reasons why people choose to buy the freehold of their property. One of the biggest reasons is to have complete control over their home. When you own the freehold, you don’t have to worry about the lease running out or having to pay ground rent.
Another reason is that buying freehold can help increase the value of your property. This is because having a longer lease or owning the freehold can make a property more attractive to buyers.
How Much Does it Cost to Buy Freehold?
The cost of buying freehold varies depending on a number of factors, such as the value of the property and the length of the lease. Generally, the cost of buying freehold is calculated based on the market value of the property, the length of the lease, and the ground rent payable.
To give you an idea, the approximate cost of buying freehold for a £500,000 property with 80 years remaining on the lease could be around £15,000 – £20,000. However, this figure can vary greatly depending on individual circumstances.
It is important to note that buying freehold can be a complex process, and it is highly recommended that you seek professional advice from a solicitor or a qualified surveyor before proceeding.
Conclusion
Buying freehold can be a wise investment for those who want complete control over their property and want to increase its value. While the cost of buying freehold can vary greatly, it is important to seek professional advice before proceeding to ensure that you fully understand the process and the costs involved.
