Freehold loans for flexibility at home

  • Borrow amounts from £10,000 to £500,000+
  • Our specialists are on hand to provide qualified advice
  • Aro is a credit broker, not a lender

14.26% APRC Representative (variable). Representative example (if you choose to add fees to the loan): assumed borrowing of £25,000 over 7 years, plus a broker fee of £2,850 and lender fee of £367.50 would result in monthly repayments of £509.96, the borrowing rate is 12.78%, the APRC is 14.26% (variable), total charge for credit would be £14,619.14 and the total amount payable would be £42,836.64. Aro is a credit broker and not a lender. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Answers at your fingertips

What is a freehold?

Owning a freehold means you own the property completely. Bricks, mortar and the ground it has been built on. This differs to a leasehold, which is where you have been given the right to use the home, leased from the freeholder. This is for a number of years, usually between 90 and 120 years. Mortgage lenders may not want to lend to you if a lease has less than 70 years remaining.


How much does it cost to purchase a freehold?

The freehold cost depends on the property price, remaining lease time and other factors, so it really can vary. A good estimation of the cost to purchase your freehold is likely similar to the cost of extending the lease for around 90 years. This can vary, for example the cost increases if the remaining lease term is 80 years or less, and you would also have to pay extra fees:

  • Stamp duty
  • Valuation fees
  • The current freeholder’s fees
  • Legal fees

How can I get finance to purchase my freehold?

There are a few ways to get the finance you need to buy your home’s freehold.

Lenders may be willing to extend your mortgage to cover the cost of the freehold, providing you have sufficient equity. The rates on this may be better than a loan, though you may end up paying more in total.

Alternatively you may be eligible to take out a homeowner loan, also known as a secured loan or a second-charge mortgage, against your property to cover the cost. This is a less risky option for the lender, so you may see benefits such as potentially being offered larger amounts, lower interest rates or long repayment terms.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

How do I purchase my freehold?

There are a few steps involved in purchasing a freehold, but the general plan is set out below.

Discuss purchasing the freehold

Assuming you (or jointly, you and your partner) are the sole owner of the house, you can pursue purchasing the freehold. If you live in a communal building such as a block of flats, there are rules you will need to refer to before looking into buying the freehold.

Appoint a solicitor

It can be a lengthy, complex process, so you are likely to need a solicitor specialising in leasehold and freehold law. They’ll serve notices, negotiate prices and apply any amendments needed.

Get a valuation

You’ll need a valuation on your property, which means you’ll need a chartered surveyor. They’ll make sure you’ve got an expert, fair valuation of the property before you proceed.

Agree on a price

Time to make an offer! You might find a discussion bouncing between you and the current freehold owner as you negotiate price. If you can’t come to an agreement, you can ask an independent body known as the Leasehold Valuation Tribunal to arbitrate and come to a fair decision for both sides.

Warning: Late repayment can cause you serious money problems. For help go to

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