FAQs: Buying Leasehold vs Freehold

• Freehold: You own the property and the land it stands on, with no time limit. This is the most common type for houses.
• Leasehold: You own the property only, for a fixed number of years (e.g. 90, 125 or even 999), but not the land or the building structure. This is typical with flats.

If you’re buying a flat, it’s highly likely to be leasehold.

As a leaseholder, you’ll enter a legal agreement (the lease) with the freeholder. This outlines how long you can live there and what rules apply. You’ll usually pay:

• Ground rent
• Service charges (for building upkeep, cleaning of communal areas etc.)
• Buildings insurance (arranged by the freeholder, but paid for by you)
• Admin fees for notices or approvals

The lease may include restrictions such as:

• No pets or subletting
• No structural changes without permission
• Flooring/carpet rules

We’ll help you by reviewing the lease and raising any issues. Key points to be aware of:

• Lease length – If it’s under 85 years, it may affect your mortgage and resale value
• Charges – Ground rent and service charges, including whether they’re reasonable or rising
• Planned major works – Future costs that could impact you
• Restrictions – Can you renovate, rent out, or keep pets?

We’ll also request a Leasehold Pack (LPE1) from the managing agent or freeholder. This often takes time to arrive and may delay the process—especially if the fee (usually £300–£800) hasn’t been paid promptly by the seller.

Not at all—millions of people own leasehold flats. But it’s important to understand:

• It usually takes longer to complete
• There are more costs than with freehold
• The lease contains rules you must follow
• You may need permission (and pay admin fees) for certain things

Sometimes, yes. If you own a flat, you may be able to buy a share of the freehold with other leaseholders in your building. There are rules and costs involved, but it can give you more control.

We’re happy to guide you if this is something you’re considering.