There are no yardsticks to measure the value of an absolute property. This is because evaluating a free domain is not a precise science. However, you can follow certain guidelines on what to consider when valuing a freehold property, which is produced by advisory services that provide free advice to tenants. You should also take these three factors into account:

1. The current value of the property

2. The annual land rent

3. The number of years currently remaining on the lease.

Also, evaluate the expected percentage increase in property value that results from extending leases for different terms, along with projected long-term interest rates and inflation rates.

Seek the help of an expert appraiser rather than trying to figure a figure yourself, to present to the landlord. An expert appraiser will be able to offer you the best advice that will allow you to make a practical offer.

You will find expert appraisers online. They will help you with the entire process of negotiation and purchase of the freehold property.

For the benefit of freehold, most surveyors add a little more to the value of a property. This is done after comparing it to a similar property with the same number of years in the lease but no freehold.

First, approach your owner informally, before you notify them for the first time. This document should include your preliminary offer for freehold ownership, which begins the legal purchase process.

A word of caution. Never file an initial notice without obtaining an expert assessment. If you make an incorrect evaluation in the initial notice, you will not be able to withdraw the offer. After the initial notification, wait for the free landlord to respond with a counter notification before the date you have indicated. The freeholder must be sanctioned at least two months from the date the initial notification is delivered.

If the freeholder does not send their counter notification within this period, the tenants can take matters into their own hands. They can apply for a vesting order in court. Now it is up to the court to transfer freehold ownership to the tenants. Therefore, free owners must respond in time to the initial notice for their own benefit.

Buying a piece of freehold will yield little profit if you’ve already had a decent-length lease. You would still have to pay the same authorized costs as someone with a short hire, but it would cause the property’s value to drop.