Converting a leasehold property to a freehold interest—often referred to as purchasing the freehold or acquiring enfranchisement—varies drastically in cost, typically ranging from several thousand dollars to tens of thousands of dollars. The exact price depends on the remaining length of the lease, the property's market value, the ground rent payable, and the capitalization rate determined by independent property valuers. Because longer remaining lease terms decrease conversion costs, homeowners often seek to purchase freeholds before leases diminish in duration.
1 votes
Marked as accepted