Buying

Leasehold vs Freehold: What’s the Difference?

admin 31 Jan 2026 2 min read

One of the most important things to understand when buying is whether a property is leasehold or freehold. The difference affects your costs, control and long-term plans.

What is freehold?

As a freeholder, you own the property and the land it stands on outright, with no time limit. You’re responsible for maintenance but have full control.

What is leasehold?

With leasehold, you own the property for a fixed term but not the land. Flats are commonly leasehold, with a freeholder responsible for the building.

Leaseholders usually pay ground rent and service charges
Lease length affects value and mortgageability
Extending a lease can be costly if left too late

Check the lease length

A short lease can be difficult to mortgage and expensive to extend. Always check the remaining term before making an offer.

Tip: Ask your solicitor to review service charges and any major works planned by the freeholder.

Frequently asked questions

Is freehold better than leasehold?

Freehold offers more control and no ground rent, but many flats are only available as leasehold. What’s ‘better’ depends on the property.

What is a short lease?

Leases under around 80 years are considered short and can be expensive to extend and harder to mortgage.

Can I buy the freehold of my flat?

In many cases leaseholders can club together to buy the freehold or extend their leases, subject to legal criteria.

Final thoughts

Always clarify the tenure before you buy and have your solicitor scrutinise the lease. It can save you significant money and stress.