From the patent rolls and the sheriff's accounts it appears that considerable use was made of Liverpool in the 13th century for shipping stores and reinforcements to Ireland and Wales.
In 1229 a charter was granted by Henry III., authorizing the formation of a merchants' gild, with hanse and other liberties and free customs, with freedom from toll throughout the kingdom. Charters were subsequently granted by successive monarchs down to the reign of William and Mary, which last was the governing charter to the date of the Municipal Reform Act (1835). In 1880 when the diocese of Liverpool was created, the borough was transformed into a city by royal charter.
The crown revenues from the burgage rents and the royal customs were leased in fee-farm from time to time, sometimes to the corporation, at other times to private persons. The first lease was from Henry III., in 1229, at £10 per annum. In the same year the borough, with all its appurtenances, was bestowed with other lands on Ranulf, earl of Chester, from whom it passed to his brother-in-law William de Ferrers, earl of Derby, who seems to have built Liverpool castle between 1232 and 1237. His grandson, Robert de Ferrers, was implicated in the rising of Simon de Montfort and his lands were confiscated in 1266 when Liverpool passed into the hands of Edmund, earl of Lancaster. Ultimately Liverpool again became the property of the crown, when Henry IV. inherited it from his father John of Gaunt, duke of Lancaster. In 1628 Charles I., in great straits for means which were refused by parliament, offered for sale about a thousand manors, among which Liverpool was included. The portion containing Liverpool was purchased by certain merchants of London, who, in 1635, reconveyed the crown rights, including the fee-farm rent of £14, 6s. 8d., to Sir Richard Molyneux, then recently created Viscount Molyneux of Maryborough, for the sum of £450. In 1672 all these rights and interests were acquired by the corporation.
Apart from the national objects for which Liverpool was founded, its trade developed slowly. From £10 per annum, in the beginning of the 13th century, the crown revenues had increased towards the end of the 14th century, to £38; but then they underwent a decline. The black death passed over Liverpool about 1360, and carried off a large part of the population. The Wars of the Roses in the 15th century unsettled the north-western districts and retarded progress for at least a century. The crown revenues diminished from £38 to less than half that sum, and were finally leased at £14, 6s. 8d., at which they continued until the sale by Charles I. It is, however, not safe to conclude that the reduced fee-farm rent represents an equivalent decline in prosperity; the privileges conferred by the various leases differed widely and may account for much of the apparent discrepancy.