What is the difference between freehold and leasehold

What Is a Freehold Property?

If your property is freehold, it means you own both the property and the land it sits on.

Freehold is more common with houses, especially older ones. Flats and many new-builds are often leasehold instead.

How to Check If a Property Is Freehold

– Ask the estate agent directly — most listings will state whether it’s freehold or leasehold
– If unsure, use the Land Registry website (small fee under £10) to get the title details
– If you proceed with buying, your solicitor will confirm and explain the legal status of ownership

How to Buy a Freehold

You can ask the current freeholder to sell the freehold at any time. This depends on whether you live in a house or a flat.

If You Live in a House:

– You can informally approach the freeholder and negotiate
– Or go through a formal legal process (only if you meet the criteria) — this route is more structured but can be expensive

If You Live in a Flat:

– You can buy a share of the freehold with other leaseholders
– This process is called collective enfranchisement

The final cost will depend on:
– The property’s value
– The lease length (less than 80 years makes it much more expensive)
– Terms and conditions within the lease

It’s not always a simple process. The Leasehold Advisory Service offers full guidance.

Does Freehold Increase Property Value?

– Owning a freehold can add around 1% to the value of a flat
– However, the main benefit is reducing ongoing costs — like service charges, ground rent, and building insurance
– If you live in a flat, owning a share of the freehold gives you more control over building maintenance and costs

You can also explore the Right to Manage option — where leaseholders take over management of the building without owning the freehold.

What Is a Leasehold?

Leasehold means:
– You own the property, but not the land
– You lease it from the freeholder for a fixed period (can be up to 999 years)
– You usually pay an annual ground rent and service charges

Some mortgage lenders won’t offer loans if the lease is short — especially under 80 years — as it may affect affordability and resale value.

Who Owns My Leasehold?

– Use the Land Registry (Title Register) to find out — it costs just £3
– Or, your solicitor can confirm this during the purchase process

How Much to Buy a Leasehold?

There is no set price. The cost depends on:
– The property’s current value
– The number of years left on the lease
– Conditions and clauses within the lease

Looking for a Freehold Property?

At Armaani Estates, we’re here to help you find the right home — whether it’s freehold, leasehold, or shared ownership.

Get in touch today for expert advice and guidance.