What’s the difference between a leasehold and a freehold property?

What’s a freehold property?

When you buy a freehold property, you’re buying the property and the land it’s on. The main benefit is that you own it all and for an unlimited amount of time. You’re solely responsible for all the maintenance and repairs. Most houses are freehold. 

What’s a leasehold property?

When you buy a leasehold property, somebody else owns the freehold. For example, when you buy a leasehold flat, you own your flat but the exterior walls, roof to the block, the stairwells, shared areas and land it’s built on are owned by the freeholder/land owner. Unlike a freehold property, you have a lease with the freeholder/land owner for a set period of time and at an agreed rate. That time can be anything from a few years to 999 years! The main benefits of owning a leasehold property include the purchase price (they’re usually cheaper than freehold), not needing to pay for buildings insurance (as you don’t own the building), and they’re cheaper to maintain (as the cost is shared through service charges). There are other advantages such as not being responsible for maintaining the communal garden. 

Looking to sell your leasehold property?

You can find out what it’s currently worth by booking a free valuation. Please try and find out how long is left on your lease as that’s important information for us to be aware of when valuing your home. It’s worth knowing that if you decided to sell, your solicitor/conveyancer will need to obtain and supply the leasehold management pack for your property as part of the selling process. There will be a cost to you for this. In most cases, it’ll be quicker for you to apply for this yourself to forward on – you can do that as soon as you like.