If you’re starting your property journey, one of the most important distinctions to understand is whether the home you are buying is freehold or leasehold. It might sound like technical jargon, but the difference can affect everything from your legal rights as a homeowner to the long-term value of your investment.
In our YouTube video, we explain everything you need to know about freehold and leasehold properties in clear, simple terms.
Watch now: Freehold vs Leasehold – What’s the Difference?
But let’s take a moment to break it down here too.
What is a Freehold Property?
When you buy a freehold property, you own the building and the land it stands on outright. That means full responsibility for the upkeep of the property and any associated land, such as a garden or driveway.
Freehold is generally the most straightforward and desirable form of ownership. You will not have to worry about paying ground rent or service charges to a landlord. You also have complete control over what you do with your home, subject to local planning rules.
Most houses in the UK are freehold.
What is a Leasehold Property?
Leasehold means you own the property for a fixed period of time but not the land it sits on. That land is owned by a freeholder or landlord. When you buy a leasehold property, you are purchasing the right to live in it for the length of the lease, which can range from a few decades to 999 years.
Leaseholds are most commonly associated with flats and apartments, where multiple units are built on the same land.
With leasehold ownership, you may need to pay:
- Ground rent
- Service charges
- Maintenance or management fees
These costs can vary and sometimes increase over time, so it is vital to understand the terms of the lease before you commit.
Key Considerations
- Length of Lease: If the lease has fewer than 80 years remaining, it can be harder to get a mortgage and the property may be more difficult to sell. Extending the lease can be costly.
- Restrictions: Leasehold properties often come with conditions around renovations, subletting or owning pets. Always check the lease for any clauses that might impact your lifestyle.
- Cost of Ownership: Make sure to factor in service charges and ground rent when working out your budget. These costs can add significantly to your annual outgoings.
Why This Matters for You
Understanding whether a property is freehold or leasehold can shape your financial plans, legal responsibilities and long-term goals as a homeowner. It is something we always discuss with our clients to ensure they are making informed decisions that align with their lifestyle and future aspirations.
Whether you are buying your first home or adding to your portfolio, we are here to guide you through every detail, including the type of ownership that is right for you.
If you have questions, we are always here to help you feel informed, empowered and supported on your home-buying journey. Please contact us, we’d love to help.
Watch our full explanation here…
Feature Photo by Chait Goli / Pexels