Leasehold vs Freehold: What’s the Difference?

Tenure changes what you actually own, what you pay each year, and how easy your home is to sell. Here’s the difference in plain English.

1. Freehold: you own it all

With freehold you own the building and the land it stands on, outright and forever. Most houses are freehold — you’re responsible for all maintenance, but nobody charges you ground rent or service charges.

2. Leasehold: you own a term of years

With leasehold — most flats — you own the right to occupy for the remaining lease term (often 99–999 years originally). The freeholder owns the building; you’ll usually pay a service charge for shared maintenance and possibly ground rent.

3. Why lease length matters

Below roughly 80 years remaining, a lease becomes expensive to extend and harder to mortgage — which hits resale value. Always check the remaining term, service charge history and any planned major works before offering.

4. Questions to ask before you buy

Who manages the building? What did the service charge cost over the last three years? Is there a sinking fund? Your solicitor will confirm the details, but asking early avoids late surprises.