Freehold
You own the building and the land it stands on. There is no lease term to manage, but you are responsible for the whole property and its upkeep.
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Freehold vs leasehold: what is the difference?
Freehold and leasehold describe the legal interest you are buying. The difference can affect ownership, running costs, maintenance, mortgageability and future resale, so it is worth understanding before you commit.
In plain English
Freehold means owning the land. Leasehold
means owning for a set term.
Both can be perfectly normal ways to buy a home, but they create different responsibilities and risks for buyers.
Leasehold
You own the right to occupy the property for a set number of years, but the land is owned by the freeholder. The lease sets out costs, rules and responsibilities.
Comparison
How freehold and leasehold ownership differ.
Topic
Freehold
Leasehold
Ownership
Freehold
You own the property and the land.
Leasehold
You own the property interest for the lease term, but not the land.
Time limit
Freehold
There is no lease expiry date.
Leasehold
The lease runs for a fixed number of years and may need extending.
Outdoor areas
Freehold
Gardens, drives and private outdoor areas usually belong to you.
Leasehold
Shared gardens, halls and communal areas are often controlled by the freeholder or managing agent.
Regular charges
Freehold
No ground rent or lease service charge, although you pay for your own maintenance.
Leasehold
Ground rent, service charges, reserve funds and administration fees may apply.
Alterations
Freehold
You usually have more freedom, subject to planning, building control and title restrictions.
Leasehold
The lease may require consent for alterations, pets, subletting or business use.
Mortgage and resale
Freehold
Usually simpler, depending on condition, title and lender requirements.
Leasehold
Short leases can make lending and resale harder, so remaining lease length matters.
Pros and cons
The right tenure depends on the property,
costs and your plans.
Freehold often gives more control. Leasehold can be common and practical for flats, but the lease terms need careful review.
Freehold properties
Pros
- Full ownership of the property and land.
- No ground rent, lease expiry date or landlord administration fees.
- More flexibility to alter or improve the property, subject to normal permissions.
- Often simpler to sell or remortgage than a property with a short lease.
Limitations
- Usually higher purchase price because the land is included.
- You carry responsibility for repairs, maintenance and buildings insurance.
- Freehold flats are uncommon in England and Wales, so choice is limited if you are buying a flat.
Leasehold properties
Pros
- Often cheaper to buy than an equivalent freehold property.
- The standard arrangement for flats, and common for shared-ownership and retirement housing.
- The freeholder or managing agent usually organises communal maintenance and buildings insurance.
- May provide access to shared facilities such as gardens, concierge areas or gyms.
Limitations
- Ownership is limited by the lease term.
- Ground rent, service charges and reserve funds can increase ongoing costs.
- Alterations or certain uses may need written consent.
- Short leases can affect mortgage options, resale value and lease-extension costs.
- Leasehold conveyancing can be more detailed and expensive.
Leasehold checks
Ask the detail before the costs
become your problem.
Leasehold ownership is often normal for flats, but the exact lease terms matter. Your conveyancer should review the legal position, while your survey should cover the physical condition of the property and building.
- How many years remain on the lease?
- What are the current ground rent, service charge and reserve fund contributions?
- Can charges increase, and how are future major works funded?
- Are pets, letting, business use or alterations restricted?
- Who manages repairs to the roof, structure, shared halls, lifts and outside areas?
- Are there disputes, planned works, cladding issues or building-safety documents to review?
Buying the freehold
Leaseholders may be able to buy the freehold,
but it needs specialist advice.
Buying the freehold can be individual or collective, depending on the property. It can improve control, but it can also involve legal, valuation and coordination costs.
A leaseholder may be able to buy the freehold alone or collectively with other leaseholders.
Flat owners may buy a share of freehold with other owners in the building.
The shorter the lease, the more expensive buying or extending the freehold interest can become.
Costs can include valuation fees, legal fees, Land Registry fees and tax advice, so specialist legal guidance matters.
Flying freehold
Some freeholds overlap neighbouring land.
A flying freehold exists where part of a freehold property extends over or under another property, such as a room over a shared passageway, a balcony over next door, or a cellar beneath neighbouring land.
Flying freeholds are not automatically a reason to walk away, but they can affect lending, insurance, repair access and legal responsibilities. Ask your conveyancer and lender to review the title before you rely on a mortgage offer.
FAQs
Common freehold and leasehold questions.
How do you find out if a property is freehold or leasehold?
Your estate agent, seller and conveyancer should confirm tenure. You can also check the Land Registry title register, which records key ownership information and title restrictions.
What happens when a lease expires?
Lease expiry is legally technical and should be checked with a conveyancer. In practice, buyers should investigate lease length early because a short lease can affect lending, value and extension cost.
What is a leaseholder deed of certificate?
It is a document linked to leaseholder protections under building-safety legislation in England. It may help qualifying leaseholders show they are protected from certain historic safety-related costs.
Survey before exchange
Tenure tells you what you own. A survey tells you what condition it is in.
Whether the property is freehold or leasehold, an independent survey helps identify hidden defects, repair priorities and condition risks before you make the final commitment.
Keep reading
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