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Leasehold vs Freehold: What First-Time Buyers Need to Check

Understand leasehold and freehold homes, including lease length, service charges, ground rent, restrictions and questions to ask before offering.

Checked 1 June 20268 min read

Quick answer

With a freehold property, you generally own the home and the land it stands on. With a leasehold property, you own the right to occupy the home for the years remaining on the lease. Before offering on a leasehold home, understand the lease length, charges, restrictions and planned major works.

Education, not advice. Use this as a clear starting point, check the linked official sources and speak to an appropriately regulated professional before acting. Read the disclaimer

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The simple difference

GOV.UK explains that a freehold buyer owns the house and the land it is built on. A leasehold buyer has a lease contract that sets out rights and obligations for a fixed term.

Flats are commonly leasehold. Some houses are leasehold too. Ask the estate agent which tenure applies and ask your conveyancer to explain the legal documents.

Leasehold questions to ask early

  • How many years remain on the lease?
  • What are the current service charge and ground rent arrangements?
  • Could those charges increase?
  • Are any major works planned?
  • Are there restrictions on pets, alterations or subletting?
  • Who is the freeholder and who manages the building?

Why lease length matters

The GOV.UK leasehold guide says lenders are typically less likely to provide mortgages where a lease has fewer than 80 years remaining. Extending a lease can also be costly.

Do not rely only on a property listing. Ask your conveyancer to review the lease and explain the implications before you commit.

Common questions

Are flats always leasehold?

Flats are commonly leasehold, but you should check the tenure and legal documents for the specific property.

Is a short lease a problem?

It can affect mortgage availability, resale and the cost of extending the lease. Ask your conveyancer and mortgage adviser to explain the position for the property.

Official sources

Use these sources to check the latest rules and read more detail:

GOV.UK: Deciding on a homeGOV.UK: Buying or owning a leasehold home
Education only: Solvado does not provide mortgage, financial, tax, legal or insurance advice. Any tool results are general estimates, not recommendations, offers or eligibility decisions. Rules, rates and criteria can change. Check official sources and speak to an appropriately regulated professional before making decisions.

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