What is the difference between leasehold and freehold?
‘Leasehold advice tailored to your needs’
Whether you’re thinking of buying a property, or you are already on the property ladder and want to know your legal status, we can give you expert leasehold advice.
The differences in detail
We often get asked, ‘what is the difference between leasehold and freehold properties?’ Read the simple explanation below to find out. We can help you with your purchase of either.
- Freehold explained
Freehold simply means that you own the property and the land on which it stands. It also means that you are fully responsible for maintaining and repairing your property.
- Leasehold explained
Leasehold means that you own the property for a set number of years. This is described as ‘the term’ in the lease and it means that you pay ground rent to the freeholder who owns the land. At the end of the lease the property reverts to the freeholder.
Owning the freehold to your property is normally an advantage and it may even increase its market value. If you’re currently living in a property under a leasehold agreement, you might be able to buy the freehold or extend the terms of your lease, which is called enfranchisement.