05/10/2026
Freehold or Leasehold,what’s the difference and what’s best for you ?
FREEHOLD
Owning a freehold means you hold:
• The property itself
• The land it sits on
• The title, permanently, with no time limit
You’re also responsible for looking after the building and the land yourself.
LEASEHOLD
Owning a leasehold means you have the right to occupy the property for a set number of years, as agreed in a lease.
The land belongs to a freeholder (also known as the landlord).
Once the lease runs out, ownership can revert to the freeholder unless the lease has been extended.
GROUND RENT & SERVICE CHARGES
As a leasehold owner, you may have to pay:
• Ground rent: a regular payment made to the freeholder
• Service charges: your share of the costs of shared areas, buildings insurance, repairs, and management
Freehold properties don’t normally carry these costs, although some newer developments may charge for estate upkeep.
WHY LEASE LENGTH MATTERS
A short lease can:
• Reduce the value of the property
• Make it difficult to secure a mortgage
• Cost a lot to extend
As a rule of thumb, a lease with under 80 years left deserves close attention.
MY ADVICE
Before you buy a leasehold property, make sure you find out:
• How many years remain on the lease
• How much the ground rent is
• How much the service charges are
• Whether any major works are planned
Your conveyancer should walk you through all of this so you can go ahead with confidence.
WHICH IS BETTER?
Freehold is generally more straightforward and gives you more control over your home.
Leasehold is common for flats and some houses, and it isn’t automatically a poor choice. What matters is that you understand the lease terms, the costs, and the number of years remaining before you commit.
If you’re looking for some advice or thinking of buying or selling and want a clear answer before you commit, I’m here to help.
Call James on 07970 618373
Email [email protected]
Website https://jamesnightingale.expuk.com/
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