The Basics
When you buy a freehold property, you own the building and the land it sits on. Outright. Forever. Most houses in England and Wales are freehold.
When you buy a leasehold property, you own the right to live there for a set number of years — typically 99 or 125, sometimes 999. You don't own the building or the land; the freeholder does. Most flats are leasehold.
This distinction matters more than many buyers realise.
Why Leasehold Can Be Problematic
Ground rent. Some older leases include escalating ground rent clauses that double every 10-25 years. A £200 annual ground rent that doubles every 10 years becomes £6,400 after 50 years. Some mortgage lenders won't lend on properties with these clauses.
Service charges. The freeholder or their managing agent sets the annual service charge for building maintenance, insurance, and communal areas. You have limited control over what's charged, and disputes are common.
Lease length. A lease under 80 years becomes progressively more expensive to extend and harder to mortgage. Below 70 years, many lenders won't touch it. If you're looking at a flat with a short lease, factor in the cost of extension — it can be tens of thousands of pounds.
Permission for changes. Want to change your front door? Install a new kitchen? Convert the loft? On a leasehold, you may need the freeholder's written consent, sometimes accompanied by a fee.
What's Changing in 2026
The Leasehold and Freehold Reform Act is reshaping the landscape:
What to Check Before Buying a Leasehold
Our property reports include tenure information (freehold or leasehold) from the Land Registry, plus EPC data that covers the building type and construction details.
The Bottom Line
Leasehold isn't inherently bad — millions of people live happily in leasehold flats. But going in without understanding the terms is risky. Read the lease before you buy, not after.