Using our online freehold calculator, you can estimate the cost of collectively purchasing the freehold of your building with your fellow leaseholders. To use our calculator, you’ll need the following figures:
Many other variables can affect the total cost of collective enfranchisement, such as the expected increase in your property’s value, the marriage value, interest rates and forecasted inflation. As such, our calculator uses default values for these variables.
You should only use our calculator to estimate the cost of buying freehold. It’s a good starting point, but you’ll need our experts to produce a detailed report before you start committing to long-term financial decision.
The location and size of the freehold building play prominent roles in determining the cost of collective enfranchisement. But the number of flats in the building and participating leaseholders also affects the outcome, as does the average length of time remaining on each leaseholder’s lease and the potential increase in value of your building.
When determining the total cost of collective enfranchisement, you should bear the following in mind:
The value of your leasehold flat will likely rise after you purchase the freehold. Your freeholder is entitled to 50% of this increase in value on any leases with less than 80 years unexpired.
If you decide to collectively buy your freehold building, your landlord’s financial interests may take a hit. For example, if your freeholder’s other leaseholds lose value as a direct cause of collective enfranchisement, you’ll be liable to pay them some compensation.
Purchase the freehold in partnership with your fellow leaseholders, and you could increase the value of your flat dramatically. But that doesn’t mean collective enfranchisement is always the best option.
The potential benefits of collective enfranchisement include:
You need to decide whether you’re better off extending your lease or buying your leasehold. Call us, and we’ll provide as much advice as you require.
Learn more about collective enfranchisement
Learn more about extending your lease
Want to know how to buy your freehold? Wondering whether to extend your lease or band together with your neighbours to buy your building? Confused by the finances? Need an accurate valuation?
If the answer to any of the above questions is ‘yes,’ we’re at your disposal. We can detail the process of collective enfranchisement, the potential benefits and drawbacks, alternative options, and more.
Contact us today, and we’ll put your mind at ease, provide free quotes, and act as your impartial property expert to help you protect your finances.