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SKU: 5.8
  • Advice


    Freehold is when you own the property and the surrounding land. It is when you have bought the property outright or mortgaged it. You are the sole claimant to the property. The only other person/s who has authority is the bank or building society that provided the loan. The bank will only intervene if you stop paying the mortgage.


    • You have the right to modify the property (subject to planning permission);
    • You would face fewer limitations should want to transfer the ownership of the property to someone else;
    • You have a higher chance of being lent money to finance the property;
    • You will not have to pay annual ground rent on top of your mortgage and other utilities; and
    • There is potential for the property to rise in value.


    When you own a leasehold, you own your property (subject to the leasehold's terms) for the length of your lease agreement with the freeholder. You do not own the land that surrounds the property. The freeholder would lease the property to you for a certain amount of time. The majority of the time, leases are usually long-term, often 90 years or 120 years or as high as 999 years. A shorter lease is around 40 years long. Apartments or flats to be sold on a leasehold are likely due to someone owning the building.


    • It is cheaper for you to buy a leasehold property.
    • Even though you are responsible for maintaining your property, you will not be liable for any maintenance surrounding the property.


    • You must gain permission from the leaseholder if you wish to make any significant change to the property;
    • You will have to pay ground rent and service charge to the freeholder;
    • A short lease may prevent the resale of the property or your ability to get a mortgage; and
    • Your lease is subject to conditions that may limit the way you can use the property. For example, whether or not you can have pets.


    Please note – this advice is only liable for England and Wales. If you are in Scotland or Northern Ireland, please seek alternative advice.

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