Leasehold vs freehold is one of the most important distinctions in UK property — and one of the most misunderstood. It decides whether you truly own your home outright or own the right to live in it for a fixed period, and it carries real cost and resale consequences. If you're buying a flat, this is essential reading before you sign anything.
The short answer
Own a property freehold and you own the building and the land beneath it, with no time limit and no landlord. You're responsible for maintenance, but you don't pay anyone for the right to be there. Most houses are sold freehold, and it's generally the simpler, cleaner form of ownership.
Leasehold means you own the property for a fixed term — often 99, 125 or 999 years from when the lease was created — but not the land or the building's structure. A freeholder (or management company) owns that, and you're effectively a long-term tenant with a very long tenancy. When the lease runs down, so does what you own, unless you extend it.
Flats share a structure, a roof and communal areas, so someone has to own and maintain the whole building. Leasehold is the traditional way of handling that shared responsibility — which is why almost every apartment, including the new-build and Build to Rent-adjacent stock featured across our Property Intelligence profiles, is leasehold.
Leaseholders typically face several ongoing costs and rules:
| Cost / catch | What it is |
|---|---|
| Ground rent | A charge paid to the freeholder for the land (being reduced by reform) |
| Service charge | Your share of maintaining the building and communal areas |
| Permissions | You may need consent (and a fee) to alter, sublet or keep pets |
| Lease length | The years remaining — short leases lose value and are harder to mortgage |
These are exactly the numbers that turn an attractive headline yield into a thinner net one — model them properly before buying a buy-to-let flat, and read our guide to service charges.
The number of years left on a lease directly affects value and mortgageability. Below around 80 years, extending becomes markedly more expensive (a rule called 'marriage value' historically applied), and many lenders are wary of short leases. Always check the remaining term before you offer — a cheap flat with a short lease can be a costly trap.
Leasehold is being reformed to give leaseholders a better deal — cheaper, easier lease extensions, controls on ground rent, and a push to make commonhold the future default for flats. It's a fast-moving area, so check the current position; our leasehold reform 2026 guide explains where it stands.
Freehold means you own the property and the land outright with no time limit. Leasehold means you own the right to live in the property for a fixed number of years but not the land, and you usually pay ground rent and service charges to a freeholder.
Not necessarily — most flats are leasehold and can be perfectly good buys. The key is checking the lease length, ground rent, service charges and any restrictive terms before you commit.
Flats share a structure and communal areas that need collective upkeep, and leasehold is the traditional way of managing that shared responsibility. Houses are usually self-contained, so they're normally sold freehold.
Longer is better. Many lenders and buyers are cautious below around 80 years, where extension costs rise. Always check the remaining term before making an offer.