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Leasehold vs Freehold UK: Buyer's Guide (2026)

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Part ofConveyancing

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
If you're buying a home in England or Wales, one of the first things your conveyancer will flag is whether the property is leasehold or freehold. The distinction isn't just a technicality on the title deeds, it shapes what you actually own, what you pay every year, and how much freedom you have to change the place you live in. Houses are more commonly sold freehold, while most flats are sold leasehold, but there are plenty of exceptions and some newer developments use share of freehold or commonhold arrangements. This guide walks you through how each tenure works, what the financial and practical trade-offs look like, and the questions worth asking before you commit. I've written it for buyers who want to understand what they're signing, not just tick a box on a checklist. Getting this right at the outset saves a lot of frustration later on.

What this document is

Conveyancing is the legal process of transferring ownership of a property from seller to buyer. The type of ownership being transferred, the 'tenure', determines what you end up with once the keys are handed over. Freehold means you own the property outright, including the land beneath it, with no time limit on your ownership.

Leasehold means you own the right to occupy the property for a fixed number of years set out in a lease, but the underlying land and often the building's structure remain with the freeholder, sometimes called the landlord. The lease is a legal contract that governs your relationship with the freeholder, covering ground rent, service charges, permissions for alterations, and what happens if things go wrong.

Conveyancing for a leasehold property tends to be more involved because your solicitor has to read the lease, check for problem clauses, review management pack information, and raise enquiries about service charge accounts and any planned major works. Freehold transactions are usually simpler, though they come with their own points to check around boundaries, rights of way, and covenants.

How to use this document

  1. Confirm the tenure early. Before you make an offer, check the estate agent's listing and the Land Registry title to see whether the property is freehold, leasehold, or share of freehold. If it's leasehold, ask how many years are left on the lease, as anything under around 80 years can cause mortgage problems and cost significantly more to extend later.
  2. Instruct a conveyancer who knows leasehold work. Leasehold transactions involve reading the lease carefully, requesting a management pack from the freeholder or managing agent, and raising enquiries about ground rent terms, service charges, reserve funds, and any disputes. Make sure whoever you instruct has genuine experience with leasehold rather than treating it as an add-on to a standard purchase.
  3. Review the lease and management information. Your conveyancer will flag clauses that matter: ground rent escalation, restrictions on pets or subletting, obligations to contribute to building repairs, and consent requirements for alterations. Read the summary they send you and ask questions if anything seems unclear or unusually restrictive compared with what you expected.
  4. Budget for the full picture of costs. Beyond the purchase price, factor in Stamp Duty Land Tax, searches, the conveyancer's fees, mortgage valuation, and, for leasehold, ground rent, service charges, and any one-off contributions to major works. For freehold houses, check whether there are any estate rentcharges or management company fees that apply to shared areas on newer developments.
  5. Plan for the long term before you exchange. Think about how long you intend to stay, whether you might want to extend or remortgage, and what a future buyer will ask. A short lease, an aggressive ground rent clause, or a poorly run management company can all affect resale value, so it's worth raising these points with your conveyancer before you commit rather than after completion.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Common questions

Q What's the main difference between leasehold and freehold?
Freehold means you own the property and the land it sits on outright, with no time limit. Leasehold means you own the right to live in the property for a set number of years under a lease, while the freeholder retains ownership of the land and usually the building's structure. Leasehold also brings ongoing obligations like ground rent and service charges.
Q How long should a lease be when I buy a flat?
Most lenders want at least 70 to 80 years remaining at the end of the mortgage term, and leases are easier to sell and cheaper to extend when they're well above 80 years. Once a lease drops below 80 years, extension costs rise sharply because of something called marriage value. Always check the remaining term before making an offer.
Q Can I extend my lease after buying?
Yes. Leaseholders who have owned a flat for at least two years generally have a statutory right to extend, and recent reforms have changed how extensions are calculated and how long you can add. The cost depends on the remaining term, ground rent, and property value. It's worth getting a specialist valuation before starting the process.
Q What are ground rent and service charges?
Ground rent is a payment to the freeholder for the land your flat sits on, though for most new long residential leases granted after June 2022 ground rent is capped at a peppercorn, meaning effectively nothing. Service charges cover maintenance of shared areas, buildings insurance, and sometimes a reserve fund for future major works. Both should be clearly set out in the lease.
Q Are all houses freehold and all flats leasehold?
Usually, but not always. Most houses are freehold, but some, particularly on newer developments, have been sold leasehold, which caused enough controversy that the government has moved to ban new leasehold houses in most cases. Flats are typically leasehold because the structure is shared, though some are sold with a share of freehold or, increasingly, on a commonhold basis.
Q What is share of freehold?
Share of freehold usually means the leaseholders of the flats in a building jointly own the freehold, often through a company they all hold shares in. You still have a lease governing your flat, but you collectively control the freehold, which makes lease extensions, ground rent, and decisions about the building much easier to manage than with an external freeholder.
Q Does conveyancing cost more for leasehold properties?
Yes, generally. Leasehold conveyancing involves more work: reviewing the lease, obtaining a management pack from the freeholder or managing agent, raising additional enquiries, and serving notices of transfer and charge after completion. Expect higher legal fees and additional disbursements compared with a straightforward freehold purchase, though the exact amounts vary between firms.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.