Freehold Calculator
What does this freehold calculator do?
Compare freehold and leasehold ownership costs in this free calculator. Add purchase price, ground rent, service charges and lease length to see total 10-year cost, breakeven point and the real premium of buying the freehold or extending a short lease. Use it to decide whether a flat's extra fees make a house better value.
Read more
Many leasehold buyers underestimate long-term costs. Ground rent, service charges, and major works add thousands annually. Short leases require expensive extensions – a £300,000 flat with 80 years remaining could cost £20,000-£40,000 to extend.
Understanding true leasehold costs helps you budget accurately. Enter your property details below to compare long-term costs of leasehold versus freehold ownership.
Leasehold Details
Freehold Comparison
Typical freehold house: £1,000-£2,500/year for repairs, insurance, upkeep
Note: Freehold costs don't include service charges or ground rent, but you're fully responsible for all maintenance and building insurance.
Leasehold
£460/month over 10 years
Freehold
Cheaper£137/month over 10 years
Freehold saves you £38,735 over 10 years
That's £3,874/year or £323/month
Leasehold Risk Assessment: Medium Risk
- Lease approaching 80 years - plan for extension
Lease Extension Required
After 10 years, your lease will have 75 years remaining. Most lenders require 80+ years for mortgages. We've included an estimated extension cost of £24,000 in the leasehold total.
Year-by-Year Comparison (First 5 Years)
| Year | Service Charge | Ground Rent | Leasehold Total | Freehold Maint. |
|---|---|---|---|---|
| Year 1 | £2,500 | £250 | £2,750 | £1,500 |
| Year 2 | £2,575 | £250 | £2,825 | £1,530 |
| Year 3 | £2,652 | £250 | £2,902 | £1,561 |
| Year 4 | £2,732 | £250 | £2,982 | £1,592 |
| Year 5 | £2,814 | £250 | £3,064 | £1,624 |
Ongoing Costs Unique to Leasehold
Leasehold properties come with mandatory ongoing costs that freehold owners don't pay:
Service Charges
Covers building insurance, communal area maintenance, lift servicing, cleaning, gardening, and management fees. Typically £1,500-£5,000/year for flats, potentially much higher for luxury developments. You must pay regardless of whether you use facilities.
Ground Rent
A fee paid to the freeholder simply for occupying the land. Ranges from peppercorn (effectively £0) to several hundred pounds annually. Beware doubling clauses — some leases double ground rent every 10-25 years, becoming problematic.
Major Works
One-off bills for significant repairs — roof replacement, external decoration, lift modernisation. Can run to £10,000-£30,000+ per flat with limited notice. Ask about reserve funds and planned works before buying.
Lease Extension
If your lease drops below 80 years, you'll likely need to extend it to sell or remortgage. Costs £10,000-£50,000+ depending on property value and remaining term. The shorter the lease, the more expensive.
Why Lease Length Matters
The number of years remaining on a lease significantly affects value, mortgageability, and future costs:
The critical threshold is 80 years. Below this, leaseholders must pay 'marriage value' (50% of the value increase from extending) to the freeholder, making extensions dramatically more expensive. A property worth £300,000 might see extension costs jump from £15,000 at 82 years to £40,000+ at 75 years.
Legal and Resale Implications
Beyond costs, leasehold affects your rights as a property owner:
- Alterations require consent: Major changes often need freeholder approval, sometimes with fees attached
- Pets and subletting: Your lease may prohibit or restrict pets, Airbnb rentals, or long-term subletting
- Selling complications: Buyers conduct lease checks, and problematic terms can delay or collapse sales
- Management quality: You have limited control over who manages the building and how money is spent
⚠️ Ground Rent Warning
Some older leases have ground rent clauses that double every 10-25 years. A £250 ground rent could become £8,000 after 50 years. These are considered 'onerous' and can make properties unmortgageable. The government is reforming this, but check your lease carefully.
Frequently Asked Questions
What's Next?
Not sure which calculators you need?
Answer 7 quick questions and we'll show you exactly which UK costs apply to your situation. Takes under 60 seconds.