What is a freehold?
The freeholder of a property owns it outright, including the land it’s built on.
If you buy a freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs.
Benefits of having a freehold
You don’t have to:
- Worry about the lease running out, as you own the property outright.
- Deal with the freeholder (often known as the landlord).
- Pay ground rent, services charges or any other landlord charges.
What is a leasehold?
With a leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder.
When the lease ends, ownership returns to the freeholder, unless you can extend the lease.
Most flats and maisonettes are owned leasehold, so while you own your property in the building, you have no stake in the building it is in.
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